What is an unsecured business loan?

Unsecured Business Loans

Unsecured Loans are a great funding option for businesses that don’t own many assets, businesses that would prefer not to offer security, or a company that’s growing fast and needs finance quickly.

Loans of up to £100,000 unsecured are available, even up to £250,000 in the right circumstances.

Understandably there is much more risk to the lender with the debt being unsecured, therefore trading history becomes very important and the lender may ask for a personal guarantee.

Benefits of an unsecured business loan

Speed

They are less complex and therefore much quicker to arrange than secured loans, with approval and funds being made available in just a few hours.

Risk

As no assets are required to take out this type of loan, there is reduced risk for the borrower.

Flexibility

Smaller amounts of money are available in unsecured loans, allowing businesses to cover slower periods without committing to lengthy repayment terms that are often associated with secured loans.

Good for: Any business looking for a speedy cash injection with few assets to offer up as collateral.