Compare Unsecured Business Loans

  • Unsecured loans are a popular option for business borrowers
  • Below you can compare unsecured loans from leading UK business finance specialists
  • Compare the latest available loan amounts, terms and product features

What brings you here today?

I'm ready to buy

If you know what you want and you're ready to buy, we can help you compare products from some of the UK's top providers.

Compare now

I’m here to learn

Want to find out more? Check out our handy guide for more information and to learn about your options.

Learn more

Ready to compare?

Compare now
Last updated on 06 May 2022.

Business Unsecured Loans FAQ

What is a business unsecured loan?

A business unsecured loan is a specialised business loan. They are provided by lenders to people who need to borrow money in order to get their business started, or to companies who need access to additional funds to support their cash flow or make a significant purchase.

How does a business unsecured loan differ from other business loans?

Just like personal loans, business loans can be either secured or unsecured. Secured business loans are secured against the value of significant assets, such as property or machinery. If the borrower was to default on the payment the lender could be entitled to claim the asset.

Unsecured loans are not held against an asset in the same way, meaning they’re riskier for the lenders should the borrower default on the loan repayments. To offset the risk, lenders will sometimes charge higher interest rates as well as introducing more stringent affordability checks to ensure the business can make the repayments.

How does a lender decide whether or not to offer a business unsecured loan?

The main difference between business loans and personal loans is the criteria on which your financial security is assessed. For a personal loan, the focus is on your personal financial situation. Your income, savings, outgoings, and regular financial commitments are used as an indicator of whether or not you will be capable of keeping up with the repayments.

Business loans, on the other hand, look at the company’s finances and performance in recent years. Or, if you’re taking out a business loan to get the company off the ground, expect the lender to also take your personal track record in business into account, as well as your business plan and the skills and resources you have at your disposal. The lender will look at all this and more to decide how likely it is that you will be able to repay the loan within the timeframe discussed.

Since it’s in the lender’s best interest for your business to succeed, they will often offer advice and support as part of the service.

How much interest will I have to pay on a business unsecured loan?

The level of interest you pay on a business unsecured loan will depend on a number of factors including the type of enterprise applying for the loan, whether it’s a start-up or established company, the length of time you will be making repayments, your company’s credit rating (and potentially your own if it’s a new business) and of course which bank or lender you go to.

Will the interest rate on a business unsecured loan fluctuate?

Whether or not the interest on your business unsecured loan fluctuates will depend on what kind of loan you’ve taken out. Business unsecured loans are available with either a fixed or variable rate.

A fixed rate loan enshrines a fixed interest rate that will remain steady for the duration of the loan agreement.

On a variable rate business unsecured loan, the lender can change the interest rate, usually in response to changes in the Bank of England Base rate.

How much will I be able to borrow with a business unsecured loan?

Business unsecured loans are designed for smaller sums of money. They are widely available for up to £250,000 but whether or not you will be able to borrow this much will depend on your personal and business circumstances.

How long can I borrow the money for?

Business loans, both secured and unsecured, offer a wide range of variation in repayment options. Short term loans of a few hundred or thousand pounds are usually repaid over a few short years, with some repayment options going as low as one year.

Longer term payments are available, with some banks offering 10-year payment plans, or even as long as 25 years. Variable rate loans tend to be available over a longer period of time than fixed rate loans.

How do I choose the right business unsecured loan for my company?

The answer to this question is a combination of factors, namely how long you want to borrow the loan for, what level of advice and support you require and who offers the best interest rate to suit your circumstances.

Remember it’s also worth talking to providers to ensure you find them supportive and to check what would happen in the worst case scenario that you’re unable to meet a repayment.

Are there any alternatives to business unsecured loans?

Yes, there are a number of alternatives to business unsecured loans. These range from secured business loans – which require you to put up a business asset as security against your loan – through to credit cards and overdrafts for small sums of money, to asset financing, bridging loans, credit lines, invoice financing and more.

Compare Unsecured Business Loans

7 products found
  • Puzzle Funding Unsecured Business Loans logo
    Broker

    Puzzle Funding Unsecured Business Loans

    • Apply in 3 minutes & decisions in as little as 1 hour
    • Check your eligibility not your credit score
    • High acceptance rate
    • Minimum Turnover
      £100,000 p.a
    • Available Amounts
      £1,000 to £15,000,000
    • Available Terms
      1 month to 25 years
  • Swoop Funding Unsecured Business Loans logo
    Broker

    Swoop Funding Unsecured Business Loans

    • Strategic borrowing which provides access to funds without risking your assets
    • Lets you access cash fast
    • Can be used for any business purpose
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £2,000 to £1,000,000
    • Available Terms
      1 month to 5 years
  • Funding Xchange Unsecured Business Loans logo
    Broker

    Funding Xchange Unsecured Business Loans

    • Find funding from a wide range of unsecured finance providers, business assets are not required
    • Can be used to support cash flow, stock or asset purchases and help grow your business
    • See personalised offers from 40+ lenders in just 3 minutes. Search won't impact your credit rating
    • Minimum Turnover
      £100,000 p.a.
    • Available Amounts
      £1,000 to £500,000
    • Available Terms
      1 month to 5 years
  • Capify Unsecured Business Loans logo

    Capify Unsecured Business Loans

    • Providing unsecured loans to business owners across the UK for over 13 years
    • Simple online eligibility checker, with no credit check required
    • Funds available as fast as 24 hrs after approval
    • Minimum Turnover
      £120,000 p.a.
    • Available Amounts
      £5,000 to £250,000
    • Available Terms
      3 months to 1 year
  • Cubefunder Unsecured Business Loans logo

    Cubefunder Unsecured Business Loans

    • Only available to Limited Companies in England and Wales with 3+ months' trading
    • Borrow £5,000 - £100,000 - without security - for any business purpose
    • No penalty fees, only pay for the time you use the loan
    • Flexible, tailored repayment schedule to fit in with your cash flow
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £5,000 to £100,000
    • Available Terms
      3 months to 1 year
  • JD Capital Finance Unsecured Business Loans logo
    Broker

    JD Capital Finance Unsecured Business Loans

    • Unsecured loans to aid with working capital
    • Specialist team offering support during every step
    • Rates starting as from 1.3% APR
    • Minimum Turnover
      £100,000 p.a.
    • Available Amounts
      £10,000 to £1,000,000
    • Available Terms
      3 months to 6 years
  • iwoca Unsecured Loans logo

    iwoca Unsecured Loans

    • Flexible unsecured credit facility
    • Repay early and only pay interest for the days you’re using the funds
    • Straightforward applications and quick decisions
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £1,000 to £200,000
    • Available Terms
      Up to 12 months
  • Suppliers that don't offer Unsecured Business Loans but may offer suitable alternatives:

    • Nationwide Finance Business Finance logo

      Nationwide Finance Business Finance

      • Nationwide Finance help 35,000 businesses get finance each year
      • Direct funder - not a broker
      • Same day decision, funds within 24 hours
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        1 to 5 years
    • Funding Circle logo

      Funding Circle

      • Your business must have a minimum of 2 years’ trading history
      • A leading UK platform for small business loans
      • Simple online application and decisions in as little as 5 hours
      • Rates from 3.9% per year - No early settlement fees
      • Minimum Turnover
        £16,700 p.a.
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        2 to 6 years
    • Fleximize logo

      Fleximize

      • Industry-leading flexibility - top-ups, repayment holidays, penalty-free early repayment, no set-up fees
      • Interest charged on reducing balance, not total loan amount - repay early and only pay for the time you had the loan
      • Apply online in five minutes, typically get a decision in 24 to 48 hours, receive funds the same day
      • Minimum Turnover
        £60,000 p.a.
      • Available Amounts
        £5,000 to £500,000
      • Available Terms
        3 months to 4 years
    • 365 Business Finance logo

      365 Business Finance

      • Your business must process credit and debit card transactions to apply for this product
      • A flexible business funding alternative
      • Cash advanced against card transactions
      • Pay back an affordable % of your card transactions
      • Minimum Turnover
        £10,000+ card transactions per month
      • Available Amounts
        £10,000 to £300,000
      • Available Terms
        4 to 18 months

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

NerdWallet - Our awards

Award-winning comparisons you can trust

It's always nice to know you're on the right track. Over the years, as we have striven to improve the services we provide to our clients and users, we have been pleased to receive recognition for our efforts from both industry and consumer bodies.

Featured brands

View all Business Loans providers