Unsecured Business Loan

How business loans work

"The options for business owners in accessing funding have improved significantly in the last 2 years".

The growth of peer to peer funding and crowdfunding platforms offering finance means that high street banks no longer have control over this market for loans up to £500,000.

How much you can borrow, how long for and how much you are likely to pay in interest will depend on the reasons for the loan, the current and past performance of your business and various other factors.

To find out the best type of business borrowing for your specific needs and circumstances, it is well worth talking to a professional loan advisor.

We can help you access the money you need at the most affordable price quickly and with the less possible hassle.

Understanding business loans

There are various types of business finance which may be appropriate for your borrowing needs.

• Short and long term finance

Whether you need short term finance to help with cash flow, or finance over a longer term to fund expansion, business loans can be acquired over a range of different terms to suit a variety of business needs. For bridging loans use our bridging loan calculator

• Unsecured business loans

If you need to borrow a relatively small amount, you may be able to take the loan on an unsecured basis. This can allow you to access the money you need relatively quickly with a fairly simply application process. 

Unsecured Business Loans

What is an Unsecured Business Loan?

This type of loan does not use any of your assets as security and therefore, there isn’t the danger of losing your home, business or car if you cannot make repayments, the lender would find it very difficult to take possession of these.

However, because the loan is not secured, you may find that your borrowing will be limited as bigger loans will often require some form of security. The limit is usually up to £25,000. To gain your loan, yours and your business’s credit history will be taken in to account and the amount you can borrow and the interest rate will be set accordingly.

Alternatively, a secured business loan will use your assets as a guarantee for your loan. If you cannot make repayments then these items could be at risk. Due to this security you will be more likely to be able to borrow a much higher amount.

Why Use a Business Loan?

There are several reasons why someone may choose to use a business loan and several types of loan to suit various needs. For example:

If you need short or long term finance for your business – whether you need short term finance to help with cash flow or finance over a longer term to fund extension plans, business loans can be acquired over a range of different terms to suit a variety of business needs.

Start-up business loans – start-up business loans can offer you a large loan when first launching your new business to help meet the demands of employees, clients and cash flows. It’s a great way to help a new business get started.

Peer-to-peer lenders – Many business loans can be acquired through peer to peer lenders, where you borrow from other people rather than banks.

How to Get a Business Loan?

Once you’ve chosen the loan which suits you the best, then you will need to apply online with the right information.

Having the necessary information available when you apply for a loan can help speed up the process and boost your chances for success. This information includes:

• What are you going to use the loan for?
• How much would you like to borrow?
• Over what period do you want to repay the loan?
• What type of business is it and who are the owners/directors?

Once you have filled in the online form and provided the above information in detail, they will then assess the information against your credit rating and past history. The provider will decide whether to lend you some, all or none of the desired amount.

To Find out the best business loan deal for your situation complete our enquiry form above.