Unsecured Business Loan?
An unsecured business loan is a funding solution that requires no personal or business asset as collateral. However, if you are considering an unsecured business loan, you will need to have a good credit rating, accompanied by an excellent financial history and cash flow forecast.
As the finance company takes more of the risk involved in granting the loan, higher interest rates are imposed.
Most business loans require the business to offer something as collateral on the loan, which is usually a key business asset that holds significant value. So if you failed to keep up with repayments on the loan, the provider can claim the security. The idea behind it is that it’s an important asset, so it motivates the business to keep to the payment schedule, as if they fail to stick to the payment schedule, the loan provider can recoup some of their losses.
Things to consider with unsecured business loans
Unsecured business loans usually have a different repayment structure to secured loans and may cost more in interest than an equivalent secured loan. But, this type of loan comes with the added benefit that secured loans do not provide; they allow your business to continue operating without running the risk of losing key assets, especially for smaller amounts.
Unsecured loans are a great funding option for:
- Businesses that do not own many assets
- Businesses that would prefer not to offer security
- Or any company that’s growing fast and needs finance quickly
Where can I apply for unsecured business loans?
Most traditional finance providers are less likely to offer favourable terms on unsecured business loans and some high street banks refuse to offer them at all. But do not lose hope, there are a variety of lenders on the market that are able to offer unsecured loans of up to £250,000 – including us.
We provide unsecured loans for an array of different circumstances. Our friendly and helpful team have experience when working with companies in different industries, which allows us to make clearer judgements about risk and to award loans based on individual circumstances.
We believe in honest dealing and we encourage faster repayments, where you can – but there’s no pressure. It is in your best interest to repay your loan ahead of time, as you’ll pay less interest and will suffer no early repayment penalties or surprise fees – which means better terms for you and less risk for us.
Benefits of unsecured business loans
There are a whole host of benefits waiting to be utilised when you take out an unsecured business loan with us. We offer rates of 4.8% on loans between £25,000 and £500,000. We make it easy for you to pay back your loan, with fixed monthly payments which also makes budgeting easier.
Our unsecured business loans also have:
- No fees up front
- No early settlement penalties
- No exit fees
- Repayment terms between six months and five years
Simple application process
When you apply for an unsecured business loan with us, you’ll be pleasantly surprised at how simple the process is. You can apply online, receive a decision in under 24 hours have the funds cleared in your account the next day.
You won’t have to worry about any hidden fees cropping up, either. You’ll know exactly what the terms on your loan are.
Give us a call
If you want a business loan without offering security, an unsecured business loan might be what you’re looking for and we provide them. Fill out our form or contact us today to discuss your situation with our sales team.