However, if you are considering a 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.
What are unsecured business loans?
Your business needs money to grow and expand, but you cannot afford to take risks with your company’s future. Unsecured business finance could be the answer.
An unsecured business loan is essentially a form of lending in which you gain access to money without the need for collateral. Unlike secured loans, the money borrowed is not tied to company premises, equipment, or assets. This instantly removes the burden of stress from your shoulders.
There are plenty of additional benefits to be gained from using business loans, including but not limited to;
- Gain quicker access to funding as there is no need to have assets valued
- Maintain focus on the key business matters rather than worrying about the secured assets
- Gain access to funding when your new business lacks assets
- Enjoy additional flexibility, especially when building a relationship with a reliable lender like Century Business Finance
- Borrow more cash because you won’t be restricted to the value of your assets
While secured loans are still a worthwhile solution in many situations, unsecured business finance will satisfy your needs in a wider array of circumstances. If your business doesn’t have assets or needs money fast, this is the route to take.
Things to consider with unsecured business loans
Unsecured finance usually has 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 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.
How do unsecured business loans work?
Aside from the differences mentioned above, the fundamentals of unsecured business finance are very similar to those of secured finance options. However, our simple online application form will allow us to provide you with an answer within 24 hours and have funds cleared into your account the next day.
Understanding whether you qualify for an unsecured loan is simple. If you can answer yes to the following questions, you’ll be just fine;
Can the business supply one year’s financial returns?
Does the company’s annual turnover surpass £80,000?
If you can satisfy those three requirements, there’s a very strong chance that you will qualify for an unsecured business loan with Century Business Finance. From there, we will work out a suitable repayment plan that suits your immediate and long-term interests.
Benefits of unsecured business loans
There are a whole host of benefits waiting to be utilised when you take out a business loan with us. We offer rates of 4.8% on loans between £10,000 and £200,000. We make it easy for you to pay back your loan, with fixed monthly payments which also makes budgeting easier.
Our unsecured business finance also has:
- No fees up front
- No early settlement penalties
- No exit fees
- Repayment terms between six months and five years
What can the unsecured business loan funds be used for?
That’s entirely up to you. As long as the funds are to be used to support your business, there’s no limit to what you can use them for. Some examples include;
- Building a website and investing in a new marketing strategy
- Shop or office refits
- Moving office spaces or opening a bigger warehouse
- Opening a second shop or taking on new staff
- Investing in better technology to aid productivity
Whatever the reason for your business loan might be, Century Business Finance makes the process easier than you ever thought possible.
Why choose Century Business Finance?
An unsecured loan may be the best solution for your immediate and long-term future, but only when you choose the right lender. Make a poor decision, and it could come back to haunt you for for years to come.
Century Business Finance is an authorised and regulated UK lender with several years of experience in the field. We have helped hundreds of businesses like yours with their lending needs with unsecured business loans for purchasing new assets, moving to bigger premises, increased marketing strategies, and a host of additional tasks. We are perfectly placed to support your business too.
Simple application process
When you apply for an 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, unsecured business finance might be what you’re looking for and we provide it. Fill out our form or contact us today to discuss your situation with our sales team.
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