Unsecured Business Loans
Unsecured Business Loans
Unsecured business loans are an attractive solution for businesses that need quick access to capital without using assets as collateral. They offer flexibility and freedom for companies that are asset-light, or those that prefer not to leverage property or equipment.
Loan sizes typically range from £10,000 up to £2 million, with repayment terms from 3 months to 6 years. Because the facility is unsecured, most lenders will require a personal guarantee from a director or shareholder.
At The Finance Club, we explore our extensive panel of lenders to secure the right facility for your needs, managing the process from start to finish so you can focus on running your business.
What is an Unsecured Business Loan?
An unsecured business loan is based on the borrower’s creditworthiness rather than physical collateral. Approval depends on the financial strength and stability of the business, supported by a personal guarantee from a director or shareholder. These loans are particularly useful if:
- You lack tangible assets to use as security
- You prefer not to risk existing assets
- You need a fast cash injection for working capital or growth
Unsecured loans are often more flexible than secured alternatives, with options to settle early or overpay without penalties.
Who Qualifies?
Unsecured business loans are open to a wide range of UK businesses, including:
- Sole traders
- Family businesses
- Professionals (accountants, solicitors, medical practices)
- Limited companies (Ltd)
- Public limited companies (PLC)
Typical eligibility includes:
- Trading for at least 6 months
- Minimum monthly turnover of £5,000
- UK-based company structure (Ltd, LLP, PLC)
Loan amounts vary based on turnover, credit profile, and lender criteria, with sums up to £2 million available for established businesses.
How Do Unsecured Business Loans Work?
Apply
Provide recent accounts, bank statements, and director details.
Review
We submit your application to our panel of lenders. Most respond within 48 hours.
Approval
Identification and compliance checks are carried out.
Funding
Once terms are accepted, funds are typically released within 24–72 hours
Repayments are made in instalments, with interest charged only on the amount borrowed.
Benefits of Unsecured Loans
No collateral required
Faster approval than secured facilities
Access to funds within 24–72 hours
Competitive rates for strong credit profiles
Early repayment flexibility with no fees
Suitable for working capital, expansion, payroll, tax bills
Can refinance existing business loans
Key Features
- Loan size: £10,000 – £2 million
- Term: 3 months – 6 years
- Security: No assets required, but personal guarantees apply
- Speed: Funds often released within 72 hours
- Suitability: Ideal for asset-light businesses or those wanting quick, flexible finance
Personal Guarantees Explained
Because unsecured loans carry greater risk for lenders, a personal guarantee is almost always required:
Limited companies / LLPs – Directors or shareholders with 20–25%+ ownership are typically asked to provide a guarantee.
Sole traders / partnerships – Liability is automatic, as personal and business finances are not legally separate.
This guarantee is not tied to a specific asset, but it ensures repayment if the business cannot meet its obligations.
At The Finance Club, we understand the importance of speed and flexibility when funding opportunities or challenges arise. With access to a trusted panel of lenders, we provide more than capital – we provide the advantage of access.