Borrow without putting
an asset up
An unsecured business loan is not secured on property or equipment. The lender is backing your trading, not your assets, so the decision rests on turnover, filed accounts and payment history. £1,000 to £500,000, over 6 months to 6 years.
No credit check to enquire.
What an unsecured lender is actually looking at
- Trading history
Most of our panel wants at least a year, several want two, and one will look at six months. Under a year the choice narrows sharply rather than disappearing.
- Turnover against the amount
Lenders size the loan against revenue rather than profit. A rough rule across the panel is that a loan above a quarter of annual turnover needs explaining.
- How the account behaves
Bank statements matter more than most people expect. Regular returned direct debits or a constantly maxed overdraft will cost you more than one old CCJ will.
- A personal guarantee, usually
Unsecured means no charge over an asset. It rarely means no personal liability. Most of the panel asks a director to guarantee. Where it is avoidable.
Common questions
How are business loans secured?
Three different things get called security and they are not the same. A charge is over a named asset — property, land, a machine. A debenture is a floating charge over the company’s assets as a class, and it turns up on plenty of facilities sold as unsecured. A personal guarantee is not security over anything; it is you promising to pay if the company cannot. What each one puts on the line.
How is this different from a secured loan?
A secured loan is charged against something, usually property, which lets the lender offer more money over longer at a lower rate. Unsecured is faster and needs no valuation, but is smaller, shorter and dearer. Farm lending secured on land is a different thing again, on Farmzo.
How much can I borrow unsecured?
Our panel runs to £500,000. What you are offered depends on turnover and trading history, and most unsecured lending settles well below the ceiling.
Can a new company get one?
It is harder. Most lenders want twelve months of trading, and under that the options narrow to one or two. If your card takings are strong, revenue-based funding may fit where a term loan will not.
Do I need to be a limited company?
For this panel, a limited company or an LLP. Farms are the exception and can be sole traders or partnerships above £25,000, through Farmzo.
See what you could borrow
About a minute, no credit check, and we show the cost in pounds.
Get my optionsWhere to next
Secured vs unsecuredWhat each one puts on the line, and what the cheaper rate really costs.Personal guaranteesWhere PG-free lending exists, and where it does not.Cash flow finance Back to the hubCovering the gap between paying out and being paid.CalculatorMonthly repayment, total and interest, over every term.