FINANCE OPTIONS

^{Understanding} Unsecured Commercial Loans

Q: What is an unsecured commercial loan?

An unsecured commercial loan lets businesses borrow without using assets as security. Approval is based on revenue and credit profile instead.

Q: How much can my business borrow with an unsecured loan?

You can typically borrow 10–30% of your annual turnover, with amounts from £5,000 up to £25,000,000, depending on your business’s financial strength.

Q: How quickly can I get funds with an unsecured commercial loan?

Funds can be received in as little as 24–48 hours if your documents are ready and your business meets the lender’s conditions.

Q: What are unsecured commercial loans used for?

They are used for cash flow, one-off costs, business growth, managing unexpected expenses, or refinancing without needing to pledge assets.

Unsecured commercial loans are business loans that don't require you to offer any property or assets as a guarantee. They're based mostly on your business's credit and ability to repay. If you want to learn more or explore your options, feel free to reach out!

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What are the ^benefits of unsecured commercial loans?

Unsecured commercial loans provide businesses with quick access to financing without the need to put up collateral, making them ideal for startups or those lacking significant assets. These loans can be used for various purposes, such as expanding operations, managing cash flow, or purchasing inventory, allowing entrepreneurs to seize opportunities without the burden of securing their loans against personal or business assets. This flexibility and accessibility make unsecured commercial loans a valuable option in the dynamic landscape of business financing.

No collateral required

Fast approval process

Flexible use of funds

What are the different types of unsecured commercial loans?

Term Loans

Lump-sum loans repaid over a fixed term, without collateral.

Term Loans

Unsecured term loans provide businesses with a fixed amount of capital to be repaid with interest over a specified period. No asset is pledged; approval depends on creditworthiness and business performance.

Business Lines of Credit

Flexible credit with a set limit that businesses can draw from as needed, unsecured by collateral.

Business Lines of Credit

Unsecured business lines of credit allow companies to borrow funds as needed, up to a limit, without providing collateral. It helps manage cash flow gaps and short-term capital needs, with interest on drawn amounts only.

Merchant Cash Advances

Cash advances based on future credit card sales, repaid from a percentage of receipts.

Merchant Cash Advances

Merchant cash advances give businesses immediate funds in exchange for a portion of future sales. No collateral is required, but costs can be high, and repayments are tied directly to sales revenue fluctuations.

What are unsecured commercial loans?

No Collateral Required

Unsecured commercial loans do not require businesses to put up assets like property or equipment as collateral. This means businesses can borrow money without risking their physical assets, but lenders take on more risk.

Higher Interest Rates and Stricter Approval

Because lenders take more risk without collateral, unsecured loans typically have higher interest rates, shorter repayment terms, and stricter requirements for approval. Lenders focus heavily on business credit scores, financial health, and may require a personal guarantee from owners.

Faster Access, Lower Loan Amounts

Unsecured loans usually offer quicker approval and funding compared to secured loans. However, they often come with lower borrowing limits and shorter terms, making them suitable for smaller or immediate cash needs.