No property or assets needed
Unsecured Business Loans
An unsecured business loan is a loan that doesn't need property or business assets as security. The lender decides based on your turnover, trading history and credit profile, and you repay in fixed monthly instalments over a set term.
Funding Plus compares unsecured business loans from UK lenders, including those that lend to newer businesses and those with less-than-perfect credit.
- No property or assets at risk
- Decisions often within 24 to 48 hours
- Quotes without affecting your credit score
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Unsecured Business Loans
How much do you need?
Takes about a minute. No impact on your credit score.
Unsecured Business Loans at a Glance
- Amounts
- £5k – £500k
- Terms
- 3 months – 6 years
- Decision
- 24 – 72 hours
- Security
- None (guarantee usual)
- Best for
- Fast, flexible funding
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Unsecured Business Loans Work
- 1Share your detailsTell us how much you need and give us a few facts about your business.
- 2Lenders review your figuresMost look at recent bank statements and accounts, often through open banking.
- 3Compare offersSee the amount, rate, term and monthly payment from each lender.
- 4Sign and receive fundsSign electronically, give any director's guarantee, and the money is usually paid within days.
How Much Do Unsecured Business Loans Cost?
Unsecured loans usually cost more than secured loans because the lender has no asset to fall back on. Your rate depends mostly on your turnover, profitability, time trading and credit history.
- Interest, fixed for the whole term on most loans
- An arrangement fee, often taken from the loan amount
- Possible early repayment charges
- No valuation or legal fees, unlike secured loans
Worked example
Borrowing £50,000 over 3 years
- Loan amount
- £50,000
- Interest rate
- 12% a year
- Monthly repayment
- £1,660.72
- Total interest
- £9,786
- Total repayable
- £59,786
Illustrative only, not a quote. Assumes a fixed rate and no fees.
Who Can Get Unsecured Business Loans?
- UK limited company, LLP or sole trader
- Usually at least 6 to 12 months' trading
- Regular turnover through a business bank account
- No very recent CCJs or defaults (some lenders are flexible)
- A personal guarantee from directors for most lenders
What You'll Need to Apply
- Last 3 to 6 months of business bank statements, or open banking access
- Latest accounts for larger amounts
- Director ID and home address history
Pros and Cons of Unsecured Business Loans
Advantages
- No property or assets at risk
- Fast decisions and payouts
- Fixed monthly repayments
- Simple paperwork compared with secured loans
Things to watch
- Higher rates than secured lending
- Smaller maximum amounts
- Personal guarantees put directors' own finances on the line
- Shorter terms mean higher monthly payments
Personal Guarantees Explained
What a personal guarantee is
A promise from a director to repay the loan personally if the business can't. Most unsecured lenders ask for one.
Limited vs unlimited guarantees
Some guarantees are capped at a set amount. Always ask which you're signing and take independent advice if unsure.
Personal guarantee insurance
Some lenders and insurers offer cover that pays part of a guarantee if it's called. Ask before you sign.
Unsecured Business Loans vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Unsecured business loan | Fast funding without security | 1 – 5 days | None (guarantee usual) |
| Secured business loan | Larger amounts at lower rates | 2 – 6 weeks | Property or assets |
| Business line of credit | Ongoing cash flow needs | Days | Usually none |
| Merchant cash advance | Card-taking businesses | Days | None |
Who Uses Unsecured Business Loans?
Unsecured loans suit businesses with steady income but few assets to offer as security.
Customer story
“[Real customer story for Unsecured Business Loans: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] unsecured business loan
Unsecured Business Loans FAQs
How much can I borrow without security?
Lenders on our panel offer unsecured loans from about £5,000 to £500,000. Many cap the amount at a share of your annual turnover, often between 10% and 25%.
Do I need a personal guarantee?
Most unsecured lenders ask directors of limited companies for one. A few offer loans without a guarantee, usually at smaller amounts or higher rates.
Can I get an unsecured loan with bad credit?
Possibly. Some lenders focus on recent bank statements more than credit history. Expect a higher rate or a lower limit.
How fast can the money arrive?
Once you accept an offer and sign, many lenders pay within one to three working days.
Can I repay early?
Usually yes, but some lenders charge an early repayment fee or keep part of the interest. Check the terms before you sign.
Related Guides
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