An overview of unsecured business loans by The Finance Business

What Exactly Is An Unsecured Business Loan?

An unsecured business loan is a loan offered by a bank or lending institution to a business. With unsecured business loans, the borrowing business is not required to place any personal or business assets as collateral on the loan. This makes it a highly viable option for many organisations, of all sizes.

If you are looking for a property related loan, then you can apply for a commercial mortgage.

Unsecured vs. Secured

What’s The Difference Between An Unsecured Business Loan And A Secured Business Loan? For unsecured business loans, the interest rate and repayments are fixed for the life of the loan.

Unsecured business loans are not fixed to a borrower’s assets, whereas secured business loans rely on them. Unsecured business loan interest rates have a tendency to be slightly higher than those of a secured loan’s as the lender’s option for recourse against the borrower in event of default are limited.

Why An Unsecured Business Loan?

There are many reasons you may want to take out a loan as a business such as:

  •  More autonomy
  • Consolidate debts
  • Freedom to sell assets if necessary
  • No supply collateral
  • Easy to obtain

You may be under unreasonable pressure from your bank and require a loan to reconcile issues. Even if this is the case, unsecured business loans are easy to obtain and have minimal risk in comparison to secured loans. You do not need to supply collateral, whereas if your business defaults on a secured loan the lender can seize your property. 

Eligible For An Unsecured Business Loan?

A successful application is mainly based on your business and personal credit rating, your financial status, and the amount that you would like to borrow. The lender will assess the risk in offering the loan. This level of risk will then be reflected in the rate of interest within the terms and condition of your unsecured business loan.

The Finance Business terms

Every professional lender operates their own regulations. The Finance Business will consider your application for an unsecured business if your company has been trading for more than two years and you can provide two years worth of filed and formal accounts.

How Much Can I Borrow?

The Finance Business offer unsecured business loans for between £5,000 and £150,000 with rates starting from 8% APR which enables you to pay off your existing overdraft or invest in your business.

How Can I Use It?

Unsecured business loans can be used for:

  • Launching new marketing campaigns
  • Buying new business software
  • Building new websites
  • Purchasing stock
  • Carrying out expansion plans
  • Supporting the working capital
  • Supporting cash flow
  • Reducing your bank’s overdraft.

For more information about how we can help you get the funding you and your business require, get in touch with The Finance Business today for information about an unsecured business loan that can help your organisation.

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The Finance Business provide bridging loans and commercial mortgages

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