An unsecured business loan is a source of finance for businesses that can be accessed without having to be secured against company or personal assets. Our unsecured business loans are offered either with a variable rate of interest, or a fixed rate of interest. Here’s a little more about our fast unsecured business loans
When you need access to finance to help your business grow, an unsecured business loan might be the right option for you.
We offer flexible unsecured business loans to partners from a wide variety of industries, helping them reach their potential. Speak to us today to discuss your needs or apply online.
If you take out an unsecured small business loan, you have chosen a lower risk option. Unsecured loans are those for which you don’t need to offer up an asset as security.
Although you may incur charges and penalties and see a negative impact on your credit file if you miss repayments, you don’t stand to lose your home or business premises.
Secured business loans, on the other hand, are those for which you will need to offer up assets such as vehicles, machinery or property.
Secured business loans often take the form of commercial mortgages or asset finance, which are used to buy an asset that the loan is also secured against.
Secured loans are often for large amounts of money and are repayable over a very long period of time. Unsecured business loans are more flexible and short-term in nature. They will often carry higher interest rates than secured loans but are repayable over a few months or years, so cost less overall.
Whatever form your operational costs take and whatever industry you’re working in, our fast unsecured loans can provide you with the cash you need to reach your potential. Unsecured business loans are a flexible, lower risk business finance option used by small and medium sized businesses all over the UK to boost their working capital.
As well as helping to strengthen your cashflow, you can also use an unsecured small business loan to make more significant investments. Maybe you need to move to a larger premises and need a deposit, or you want to buy some manufacturing machinery that will allow you to ramp up production of your best-selling products. If you run a seasonal business, you might need to take out an unsecured business loan to enable you to meet demand during busy periods.
Whatever your reason for needing an unsecured business loan, we’re on hand to help.
Flexible access to our full range of credit
Predictable repayments over a longer term
Neither type of loan is fundamentally better than the other, but in certain circumstances, an unsecured business loan might be more appropriate.
If you are looking to take out a relatively small loan over a limited period of time, say six months or a year, then an unsecured loan will usually be the right choice for your business. Secured loans involve offering up assets as security, which allows you to borrow larger amounts and repay over a number of years, a bit like a residential mortgage.
Secured borrowing gives you access to larger loans, but they also involve more risk, as a borrower. If you find yourself in a position where you are struggling to meet the repayments for your secured loan, your lender could force the sale of your assets to cover the repayments.
Unsecured business loans don’t carry this level of risk. But this doesn’t mean you can miss repayments. If you default on your unsecured loan, you can face charges and penalties, higher interest payments and a negative impact on your personal and business credit file, which can make it difficult to secure business finance in the future.
Obtaining an unsecured business loan from a bank can be an arduous and disheartening process. They have become notorious for treating small businesses unfairly and have extremely strict lending practices.
We treat all our customers with respect and understanding. Every business has different needs and we will discuss our unsecured business loans honestly and openly with you. We don’t pretend we are doing you a favour by providing you with a business loan.
It’s a two-way street and a partnership so you can trust us to make responsible decisions based on our expert appraisal of your business.