A quick and easy capital injection for any business expense
An Unsecured Business Loan is ideal for businesses that don’t have property or items that could be classed as ‘assets’ to secure a loan against. This type of loan doesn’t offer security to the lender and may be the best option for fast-growing companies that need a quick finance option.
Obtaining an Unsecured Business Loan is usually a straightforward process, and agreements can usually be approved within a matter of days. It’s now easier than ever to apply, with only three documents required to make an application in some cases. This is to reassure the lender that the repayments will be made on time. The application process for unsecured loans can be much swifter and less daunting than the process for a secured loan, in some cases.
*(Loans over £350,000 will require a debenture)
Tell us how much you’re looking for, and what the business is intending to do with the funds.
Fill in app form and send back relevant info.
We will search the market for the most competitive offers for your business.
Approval within 48 hours.
Currently have an 85% acceptance rate
The money can be in your account within a matter of days.
Ltd companies trading for at least four months can apply for an unsecured business loan. To qualify for an unsecured business loan, you do not need to be a homeowner; tenants are accepted. Unfortunately, start-ups are not eligible for this type of loan as you have to be trading for at least four months.
There are no guarantees that you will qualify for an unsecured business loan if you have a CCJ or bad credit history. As lenders need to put their trust in you and do not have any assets to fall back on, they will likely use your spending history to help them make their decision. However, due to the flexibility of this loan, CCJs and adverse credit can be considered, and many past cases have been approved with bad credit in place.
The criteria for Tier 1 lenders are slightly stricter. To qualify with a Tier 1 lender, your business must have been trading for at least two years as a Ltd business. You must also be generating enough profit to service a loan and have a clean credit report. The lenders will look at the EBIDTA figure when businesses are loss making, so if your depreciation and amortisation figures outweigh your loss, then they will still consider your application.
An unsecured business loan works in the same way as a regular loan where repayments are made monthly, weekly or daily depending on your agreement. Loans terms can be anywhere between 2 months and 5 years according to your business needs. The loan can be used for almost any expense in the best interest of the business. Businesses usually use these loans for growth and development in refurbishment, capital expenditure and stock.
The term ‘unsecured’ means your loan is not secured against any personal or business assets, such as property, equipment, vehicles or machinery. An unsecured loan does require a personal guarantee to show the lenders that you are confident your business will keep growing over the course of the loan.
We have access to 30+ lenders in a 3-tier risk model. Our rates start from 1.9% per annum and, depending on your business risk, can go up to 5.5% per month. If you can return the requested documents quickly, funding can be with you in as little as 48 hours, however, the average time is around seven working days. In most cases, lenders do not charge early settlement fees. They will usually only charge you the amount of interest you have used up to that point, so there are savings to be made when settling early.
A personal guarantee is a form of security for the lender to ensure that they have the means to fall back on should your business fail to make the loan repayments. By providing a personal guarantee to the lender, you will act as a guarantor for the loan amount. This means you’ll pay from your own personal funds should your business default on a loan repayment.
Personal guarantees are sometimes backed up by security, which may be a charge over your home or another personal asset. While this may feel like a big commitment, it gives lenders the reassurance that you have the means to fulfil the loan amount. This kind of security theoretically makes it easier for lenders to recoup their funds should the payments default. Therefore, providing a personal guarantee when applying for an unsecured business loan could secure you a larger loan for your company.
Some insurance companies that we work with closely specialise in Personal Guarantees. If you’re worried about signing a Personal Guarantee, we can partly secure this agreement with an insurance package. This gives you more peace of mind and allows you to have a security net should you need to act upon your Personal Guarantee.
Why not speak to someone, and see how much your business qualifies for?
Call us on 01371 870815, alternatively email us at firstname.lastname@example.org
T: 01371 870 815 E: email@example.com Address: 104 Bellefield House, New London Road, Chelmsford, CM2 0RG
Registered in England: Trading under Timali Ltd
Registered Company No: 08401705