BUSINESS FINANCE

Compare ^Unsecured ^Working ^Capital ^Loans for UK SMEs

Q: Is Funding Agent a lender or a broker?

Funding Agent is both a business finance lender and a finance broker. We provide finance directly to eligible UK businesses and also help businesses access funding from a wider range of finance providers. Depending on your circumstances and the type of finance you need, Funding Agent may provide the funding directly or connect you with a suitable third-party lender.

Q: What is an unsecured working capital loan?

It is a business loan for day-to-day costs, such as wages, stock, rent, VAT and supplier bills, where the lender takes no charge over your property, vehicles or equipment. The lender decides on your trading instead: bank statements, turnover and credit history. You repay in fixed instalments, usually over a few months to a few years, and most lenders ask a director for a personal guarantee.

Q: Do you need a personal guarantee for an unsecured working capital loan?

Usually, yes. Funding Circle and iwoca, for example, both ask a director for a personal guarantee on their unsecured loans. It means that if the company cannot repay, the lender can pursue you personally for the balance. Before you sign, ask whether the guarantee is capped and who has to sign it, and take legal advice if the amount is large. Unsecured lending with no guarantee at all is uncommon.

Q: How much can you borrow without security?

It depends on your turnover and how much repayment your bank statements can support. Published ranges include £10,000 to £750,000 at Funding Circle and £1,000 to £1 million at iwoca, which lends up to 20% of turnover and caps businesses trading under a year at £10,000. Funding Agent matches requests from £1,000 to £1m across its lender panel.

Q: How quickly can you get an unsecured working capital loan?

Unsecured loans are usually quicker than secured ones because nobody has to value a property. Some lenders advertise decisions in minutes, and Funding Circle quotes decisions in as little as 5 minutes. Funds can arrive within days of signing once bank statements and ID checks are complete. Through Funding Agent, some options can be approved within 48 hours. A missing statement or complex ownership adds time.

An unsecured working capital loan gives your business cash for wages, stock, VAT or supplier bills without a charge over your premises, vehicles or equipment. Lenders decide from your bank statements and usually ask a director for a personal guarantee. Tell Funding Agent how much you need and what it covers, and we will match you with suitable lenders from a panel of 150+. Checking won't affect your credit score.

Secure up to £1,000,000 in Unsecured Working Capital Loans with Funding Agent.

Fastest and easiest application process
Dedicated support
Loan disbursed within 24 hours
No additional charges for early repayment

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What does an unsecured working capital loan ^cost?

Take £15,000 over 24 months at an illustrative 20% a year. You would repay about £763 a month, or about £18,320 in total. The same loan secured at 9% costs about £685 a month and about £16,450 in total, roughly £1,870 less, but it puts an asset at risk.

Published starting rates vary. Funding Circle advertises unsecured loans from 6.9% a year for strong applicants, and shorter, higher-risk loans cost more. Many lenders also charge a completion or arrangement fee, so compare the total repayable, not the headline rate. If an offer uses a factor rate, convert it first: see factor rate vs interest rate. Secured and invoice-based routes are covered on working capital loans.

No charge over your premises, vehicles or stock

Priced on your bank statements, not an asset valuation

Checking your options won't affect your credit score

Which unsecured working capital loan fits your business?

Short-term unsecured loan

A fixed lump sum for a known cost, repaid in equal monthly instalments.

Short-term unsecured loan

Best for a one-off cost with a clear payback date: a VAT or corporation tax bill, a stock order, or a new contract that needs funding before the first invoice is paid. Funding Circle lends £10,000 to £750,000 on this basis, and iwoca lends £1,000 to £1 million. With no asset behind the loan, the amount depends on affordability: iwoca, for example, lends up to 20% of turnover. Tax bill due? See VAT loans, or compare short-term business loans.

Unsecured revolving credit line

A limit you draw from, repay and draw again, paying interest only on what you use.

Unsecured revolving credit line

Best when the gap comes back: uneven weekly takings, seasonal stock, or customers who pay at 30 to 60 days. Limits are usually reviewed every year, and the facility gets expensive if the balance never clears. Compare a business line of credit with a business overdraft, or read what a revolving credit facility is.

When another product costs less

If your cash is tied up in invoices, card sales or assets, a product built around them may be cheaper or easier to get.

When another product costs less

Invoice finance advances money against unpaid B2B invoices and is repaid as your customers pay, usually with a charge over the sales ledger. A merchant cash advance takes a share of card takings and is priced with a factor, not an APR. If you own property or equipment, a secured loan is usually cheaper over a longer term. Compare invoice finance, merchant cash advances and secured business loans.

Checklist

Before you sign: five checks

1The total repayable, not just the monthly payment.
2All fees: arrangement, completion, broker and late-payment.
3Whether the personal guarantee is capped, and who must sign it.
4Early repayment terms, including whether interest is still due.
5Whether the monthly payment still fits in your quietest month.

Pricing quoted as a factor rate? Convert it first with our guide to factor rate vs interest rate.

Check your options

How to get an unsecured working capital loan with Funding Agent

Tell us the amount and what it covers

Enter how much you need and what it is for: wages, stock, a tax bill or a new contract. Starting an application won't affect your credit score. Funding Agent is a UK business finance lender and finance broker. It provides business funding directly to eligible businesses and also helps businesses access finance from a wider panel of finance providers.

Get matched with suitable lenders

Our platform adds public business data, such as Companies House filings, to your request and matches it to lenders on our 150+ panel whose criteria fit. Have six months of business bank statements and ID for each director ready. Larger amounts may need filed accounts or recent management figures.

Compare offers on the total you repay

Before you sign, compare the monthly payment, the total repayable, any fees, and whether the personal guarantee is capped. Where Funding Agent lends, it sets the rate, term, fees and approval decision. Where it introduces another finance provider, that provider sets them.

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Illustrative example

A VAT bill in a quiet quarter

A retailer owes £18,000 VAT in February, after a slow January. A 12-month unsecured loan spreads the bill into fixed instalments, so HMRC is paid on time and the business avoids late-payment penalties.

Illustrative example

Stock before peak season

An online seller needs £40,000 of stock in September for November sales. A short unsecured loan pays the supplier now and is repaid from the peak trading that follows.

Illustrative example

Starting a new contract

A facilities firm wins a contract that pays 60 days after each month's work. An unsecured loan covers the first two months of wages and materials. If the contract keeps paying late, invoice finance is usually the better long-term fit.

These are examples to show how the product works, not client case studies. See real Funding Agent case studies.

View Our Case Studies

Square image with a black border and white background

November 2, 2026

Case Studies

How an Established Business Secured a £200,000 Term Loan Despite Complex Banking Structures

Read how Funding Agent secured a £200,000 Term Loan for an established business to support growth despite a complex two-way sweep account structure that hid true liquidity.

£75,000 Juice working capital facility for a recruitment business

A recruitment business with 11 years' trading was offered a £75,000 Juice working capital facility despite stacked lenders and deep overdraft use.

How a Heating Controls Business Secured a £250,000 Term Loan Despite Multiple Short-Term Repayments

Read how Funding Agent secured a £250,000 term loan for a heating controls business to consolidate short-term debt despite multiple daily and weekly repayments.

Co-founder and CEO

James Laden

Extra bits you might find useful..

At a glance

Unsecured working capital loans at a glance

These are published figures from named UK lenders, checked in November 2026. They are a guide, not a quote: your lender sets the final amount, term and price after its checks.

Feature	What to expect
Security	No charge over your property, vehicles or equipment. A director's personal guarantee is usually required.
Amount	Funding Circle publishes £10,000 to £750,000. iwoca publishes £1,000 to £1 million, up to 20% of turnover.
Term	From one day to five years at iwoca. Most working capital loans are repaid within 24 months.
Price	From 6.9% a year at Funding Circle for strong applicants. Shorter, higher-risk loans cost more, and completion or arrangement fees may apply.
Decision	Funding Circle advertises decisions in as little as 5 minutes. Through Funding Agent, some options can be approved within 48 hours.
Best for	Wages, stock, VAT and supplier bills that your trading will pay back.

Pros and cons of an unsecured working capital loan

Pros

No business asset is put up as security, and nobody has to value a building.
Usually quicker to arrange than a secured loan.
Fixed instalments make the cost easy to plan.
Open to service businesses that do not own property or heavy equipment.
Many lenders, including Funding Circle and iwoca, do not charge for repaying early.

Cons

A personal guarantee means the debt can still reach you if the company cannot pay.
It usually costs more than a secured loan of the same size and term.
The instalment stays the same in a quiet month.
Amounts are capped by affordability, so a large one-off project may need security.

Compare

Unsecured working capital loan vs the alternatives

Each option below can fund day-to-day costs. They differ in what the lender relies on and how you repay.

Option	What the lender relies on	How you repay	Usually best when
Unsecured working capital loan	Bank statements, credit file and a director guarantee	Fixed monthly instalments	You have a one-off cost and a clear payback date
Secured business loan	A charge over property or assets	Fixed monthly instalments	You own assets and want a lower rate over a longer term
Business overdraft	Your account history with your bank	Interest on the overdrawn balance; can be withdrawn on demand	Small, short, unpredictable gaps
Business line of credit	Turnover, account conduct and a director guarantee	Interest on what you draw; repay and redraw	The gap repeats every month or season
Invoice finance	Unpaid B2B invoices, usually with a charge over the ledger	Settled as your customers pay	Cash is stuck in 30 to 90 day invoices
Merchant cash advance	Future card takings	A share of each day's card sales, priced with a factor	Most of your sales are by card and they swing

Not sure whether to offer security? Read our guide to secured vs unsecured business loans.

Checklist

What you need to apply

Your company name or registration number, and how long you have been trading.
The amount, what it is for, and when you expect to repay.
Six months of business bank statements.
ID for each director, and details of any loans you already repay.
Filed accounts or recent management figures for larger amounts.

Think twice

When an unsecured loan is the wrong choice

The business is losing money every month. A loan moves the problem, it does not fix it.
The gap never clears. A fixed loan for a permanent shortfall becomes expensive debt, and a revolving facility or a change in payment terms may fit better.
You cannot accept a personal guarantee. Look at invoice finance or asset-backed options instead.
You have adverse credit. See bad credit working capital loans.

Questions

Why compare unsecured working capital with Funding Agent

One application matched against a panel of 150+ UK lenders.
Funding Agent is a lender and a broker, so it can fund some businesses directly and introduce others to the wider panel.
Requests from £1,000 to £1m.
Free and without obligation. Checking won't affect your credit score.

Check your unsecured working capital options