FINANCE OPTIONS

Unsecured Corporate Loans: A Comprehensive Guide

Unsecured corporate loans are loans given to companies without requiring any collateral or assets as a guarantee. They rely mainly on the company's creditworthiness and ability to repay. If you're curious about how these loans could work for your business, feel free to ask!

Apply for business financing up to £500,000

‍

  • Quick and easy application process
  • Loan disbursed within 24 hours
  • No additional charges for early repayment
Apply Now
Cloud

We Like To Keep Things Simple

Match with
150+
Lenders
heart
Expert helpstarstar
200+ Provider
Loans from
£1000
to
£500K

zero hidden fees

underline

What are the benefits of Unsecured Corporate loans?

Unsecured corporate loans provide businesses with the necessary capital without the need for collateral, making it easier for companies to access funds quickly. This type of financing is particularly beneficial for startups and small businesses that may not have significant assets to pledge. Additionally, the flexible repayment options allow businesses to manage their cash flow more effectively, enabling them to invest in growth opportunities without the burden of securing physical assets.
black tick in a green circle
No collateral required
black tick in a green circle
Quick access to funds
black tick in a green circle
Flexible repayment options

What are the different types of Unsecured Corporate loans?

Working Capital Loans

Short-term loans for businesses to cover daily operational expenses without collateral.

Working Capital Loans

Working capital loans help companies manage cash flow gaps by financing inventory, payroll, or other short-term needs. These loans are unsecured, meaning no assets are pledged as security, but they typically require strong business credit and financials.

Revolving Credit Facilities

A credit line that allows companies to draw, repay, and redraw funds up to a set limit without collateral.

Revolving Credit Facilities

Revolving credit facilities provide flexible access to funds up to a predetermined limit. Companies can borrow, repay, and borrow again as needed. They are unsecured, so approval often depends on business creditworthiness and a history of sound financial management.

Trade Credit

An arrangement where suppliers allow businesses to purchase goods or services on account without collateral.

Trade Credit

Trade credit is an unsecured financing option where suppliers let businesses buy now and pay later, usually within 30-90 days. It's common in B2B transactions and helps manage cash flows, but relies heavily on trust and the buyer's credit profile.

What is an Unsecured Corporate Loan?

No Collateral Required

Unsecured corporate loans do not require businesses to pledge any assets, such as property or equipment, as collateral. This means companies can access funds without risking their valuable assets if they are unable to repay the loan.

Based on Creditworthiness and Higher Costs

Approval for unsecured corporate loans depends mainly on the business’s credit score and financial health. Because lenders take on more risk, these loans usually have higher interest rates and stricter eligibility requirements than secured loans.

Faster Approval and Flexible Use

Unsecured corporate loans typically have a quicker and simpler application process, allowing businesses to access funds faster. The funds can be used for various purposes, such as working capital, inventory, or expansion, but loan amounts are often smaller and repayment terms shorter than secured loans.

FAQ’S

What is an unsecured corporate loan?
Who is eligible for an unsecured corporate loan in the UK?
Do I need to provide a personal guarantee for an unsecured corporate loan?
What can unsecured corporate loans be used for?

DIVE DEEPER

Get Funding For your business

Generate offers
Cta image