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Unsecured business loans

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 4, 2023

Fact Checked By:
David Nicholson - Finance Editor

Unsecured business loans – We can get you approved today online

Unsecured business loans are loans that do not require any assets as security if you do not pay the loan.

They are very popular for small and large businesses and quite easy to get approved. We can help you get one today.

We can get you approved for a business loan totally unsecured, start online below now:

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What are unsecured business loans?

Lender risk is what really matters when deciding between secured and unsecured loans.

  • Unsecured loans are a popular choice for business borrowers
  • Here you will find information on unsecured business finance offered by top UK business finance experts. We have several commercial finance brokers we can put you in contact with
  • We can help you compare the most recent unsecured business loans; unsecured business finance amounts to borrow, unsecured business finance terms, and the unsecured business loan product features

We make getting an unsecured loan easy

We have access to over 200 lenders in the UK to get you the best rates

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FAQ’s on unsecured business loans

What is an unsecured business loan?

Unsecured loans are those that don’t require any collateral. Lenders approve unsecured loans on the basis of creditworthiness, not assets. Personal loans, student loans, and credit cards are all examples of unsecured loans.

An unsecured business loan can be described as a loan specifically providing unsecured business finances.

Lenders offer unsecured business finance to individuals who need money to start a business or to companies that need additional funds to help with cash flow.

We can get you approved for a business loan totally unsecured, start online below now:

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What makes a business unsecured loan different from other business loans?

Business loans are just like personal loans. They can be secured or unsecured. Business loans that are secured by significant assets like machinery or property can be used to secure them. Lenders could claim the asset if the borrower defaults on the payment.

Unsecured loans cannot be held against assets similarly to secured loans. This makes them riskier for lenders in the event that the borrower defaults on loan repayments.

Lenders may charge higher interest rates and require stricter affordability checks in order to offset this risk when supplying an unsecured business loan.

We can get you approved for a business loan totally unsecured, start online below now:

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What makes a lender decide whether to give a small business an unsecured loan?

Personal loans and business loans are different in that your financial security will be assessed. Personal loans are based on your financial situation. As an indicator of your ability to pay the loan back, your income, savings, outgoings and other financial obligations are all considered.

For business loans, the lender will look at the company’s financial performance and finances in the past. If you are applying for a loan to start a company, the lender will also consider your personal business record, business plan, and any resources and skills you have.

All of this information will be considered by the lender to determine if you can repay the loan in the agreed time frame for the unsecured business loan.

As it is in your and the lender’s best interest to have your business succeed, lenders will provide advice on how unsecured business loans work and support as part of their unsecured business finance service.

What interest rate will I pay on an unsecured business loan?

The interest rate you pay on an unsecured business loan will vary depending on many factors, including whether the applicant is a start-up company or an established business, how long you plan to make repayments, your business credit rating (and possibly your own) and which lender or bank you use. The interest rates will be higher than they would be on secured loans.

We can get you approved for a business loan unsecured, start online below now:

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What happens if the interest rate for a small business unsecured loan changes?

The type of loan you have taken out, whether it be a secured loan or an unsecured loan will determine whether or not your interest rate on your business loan fluctuates. Unsecured business loans can be obtained at either fixed or variable rates.

Fixed-rate loans have a fixed interest rate which will be constant for the term of the loan agreement.

Variable-rate business unsecured loans can be modified by the lender to adjust the interest rate. This is usually done in response to changes in the Bank of England Base Rate.

What amount can I borrow for an unsecured business loan?

Smaller amounts of money can be obtained through business unsecured loans. A typical loan amount may be £250,000, but your personal and business situation will determine whether you can borrow that amount.

What is the maximum amount of time I can borrow money?

Both secured loan and unsecured business loans offer many repayment options. A few hundred to a few thousand pounds can be repaid in a matter of years. Some repayment options are as low as one year.

There are longer-term options available. Some banks offer 10-year payment plans. Others may even offer 25-year payments. Variable-rate loans are more flexible than fixed-rate loans and can be used for a longer time.

We can get you approved for a business loan totally unsecured, start online below now:

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How can I find the best unsecured business loan to suit my company’s needs?

This question can be answered by a combination of factors. These include how long you plan to take out the loan, the level of support and advice you need, and the interest rate that is most appropriate for your situation.

It’s worth speaking to providers to make sure you are supported and to find out what happens if you can’t make a repayment.

What are the alternatives to business unsecured loans?

There are many options for business finance. These include :

Secured business loans that require you to place a business asset as collateral against the loan, unsecured loans, credit cards or overdrafts for small amounts of money. Asset finance, bridging loans, credit lines, and invoice finance.

Contact us today to discuss which business loan would work best for your company.

We can get you approved for a business loan totally unsecured, start online below now:

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