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

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Information written by Tim Leonard Last updated on 04 July 2022.

Unsecured business loans aim to provide the finance that businesses in the UK need without requiring any company assets to be put forward as security against the loan. This can make unsecured loans for business a relatively quick and simple way to raise finance.

The funds delivered by an unsecured business loan can be used for almost any business purpose, while not needing to provide any assets as collateral can make unsecured loans particularly appealing to newer and smaller businesses that perhaps have fewer assets to call on. You might find some of these loans are sometimes referred to as unsecured small business loans or unsecured start-up business loans.

That said, the appeal of unsecured business loans can extend to larger and more established companies. This type of loan is attractive to small and large businesses alike because of the speed at which it can be arranged and the fact that there is no need to put assets at risk.

If you’re ready to start your search and compare unsecured business loans to suit your business’ needs, take a look at the comparison table below. Alternatively, if you’ve got a few questions that need answering first, there is plenty more information and a number of FAQs below that.

What are unsecured business loans?

Unsecured business loans provide a way for companies to access finance without needing to put up an asset as security against what they borrow. For this reason, an unsecured business loan might work for you if your business has little in the way of assets, or you would prefer not to place the assets your business does have at risk by using them as collateral.

How do unsecured business loans work?

With an unsecured business loan, the amount that is borrowed, plus interest, is repaid in instalments. These regular repayments will need to be made over a set period of time, which is agreed when the loan is taken out. Assuming all of the repayments are made as and when they should be, the loan should be fully paid off by the end of the loan term. The interest rate will also be set when the loan is taken out and if it’s a fixed rate, will remain the same throughout the term.

Importantly, an unsecured business loan can be arranged without having to offer assets, such as your business premises or equipment, as security against the loan. This means such assets are not at immediate risk if loan repayments go unpaid, as they would be with a secured business loan where collateral is required.

Instead, some lenders might ask a business owner to give a personal guarantee on an unsecured business loan. By giving a personal guarantee, the owner effectively promises that they will cover the repayment of the loan from their own personal finances if the business can’t.

Advantages of unsecured business loans

The main benefits of unsecured loans for business include the following:

  • Accessibility: This type of loan is available if your business has few or no assets, or you don’t want to use them as collateral.
  • Simplicity: It may be easier to arrange than a secured loan where assets are involved. Speed: It is usually faster to arrange because assets don’t need to be valued, and their absence can make it more straightforward from a legal perspective.
  • Flexibility: The funds can be spent to help your business in almost any way it needs.
    Certainty: You know what your loan repayments will be and how long they will need to be made.
  • Low upfront cost: There are often no fees for arranging an unsecured loan and if there are, they are typically small.

Disadvantages of unsecured business loans

Potential drawbacks of unsecured business loans can include:

  • Higher interest rates: The absence of collateral as security usually means lenders often charge higher rates to compensate for the extra risk they are taking on.
  • Lower loan amounts: Available loan amounts are likely to be smaller for similar reasons.
  • Personal guarantees: If this is requested by a lender, a business owner's personal financial situation could be affected if the business can’t repay what is owed.
  • Poor credit: It could be harder to get an unsecured business loan if your business has bad or poor credit.

What is the difference between secured and unsecured business loans?

The main difference is that an asset needs to be put forward as security in order to get a secured business loan, but won’t be required for an unsecured business loan. This can make unsecured loans for business quicker and easier to arrange because they are less complicated to set up. Unsecured business loans will also usually have little to no upfront costs, because there are no assets to be valued or complex legal arrangements involved.

However, as lenders feel they are taking less risk with a secured loan, a comparable unsecured loan without an asset acting as security can usually be expected to have a higher interest rate to compensate. The amount that can be borrowed might also be smaller, and the length of time you have to repay your loan might be shorter through an unsecured business loan.

» COMPARE: Secured business loans

Can I get an unsecured business loan?

Unsecured business loans are available to various types of businesses in the UK, including sole traders, limited liability partnerships and limited companies. Eligibility criteria can differ between lenders, with each having its own minimum requirements in relation to how long a business has been operating and turnover. Most lenders ask that applicants be over 18 years of age, and that the business is registered in the UK, has a UK bank account, and has a good credit history.

Some lenders might also want a personal guarantee from the business owner, particularly for larger loan amounts. In this case, you may need to have a good personal credit history too.

To establish eligibility for an unsecured business loan, a lender might consider the size of the loan being requested and weigh it up against a business’s:

  • turnover
  • profit
  • accounts
  • trading history
  • payment history
  • projections and business plan
  • funds in the bank
  • customer base

» MORE: Eligibility for a business loan

How can I compare unsecured business loans?

Our comparison table offers a quick and easy way to find and compare unsecured business loans. Select the criteria you want to sort the lenders by – loan amount, repayment term, turnover, or our featured lenders – and the chart will reorder itself accordingly.

Further detail about a particular loan, including eligibility criteria, can be found by clicking ‘More info’. For even more detail, and to start the application process, simply click ‘See Deal’.

Business Unsecured Loans FAQ

Can I get an unsecured business loan without a personal guarantee?

Some lenders will offer unsecured business loans without the need for a personal guarantee while others will insist on one. Requesting a larger loan amount might make some lenders more likely to ask for a guarantee than with a smaller loan.

Is my business eligible for an unsecured loan?

Eligibility requirements can vary between lenders, but, as a minimum, most generally require:

applicants to be over 18 years old the business in question to be based in the UK proof that the repayments will be able to be met a business credit check to be passed

More specifically, a business will usually need to have been running for a certain amount of months and be able to demonstrate a minimum level turnover.

» MORE: How to get a business loan

What documents are required for an unsecured business loan?

The paperwork you’ll need to provide is likely to vary depending on your lender, but generally most will need to see:

  • proof of your identity
  • proof of your address
  • documents verifying your business
  • business bank account statements or other supporting documents

Which banks offer unsecured business loans?

A wide range of high street banks, challenger banks and alternative lenders all offer unsecured business loans.to.

What is the main advantage of an unsecured bank loan for a business?

The main advantage of an unsecured business loan is the ability for a business to raise finance without having to provide an asset as collateral. This can make unsecured loans for business a relatively quick and easy way for smaller businesses in particular to borrow.

About the author:

Tim draws on 20 years’ experience at Moneyfacts, Virgin Money and Future to pen articles that always put consumers’ interests first. He has particular expertise in mortgages, pensions and savings. Read more

Compare Unsecured Business Loans

8 products found
  • Love Finance Unsecured Business Loans logo
    Broker

    Love Finance Unsecured Business Loans

    • Unsecured business loans for any purpose with rates from 2.9%
    • With an unsecured business loan, your property and assets are not at risk
    • Apply for a quick decision unsecured loan and borrow up to £500,000
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £50,000 to £250,000
    • Available Terms
      3 months to 5 years
  • Funding Circle Unsecured Loans logo
    Peer To Peer

    Funding Circle Unsecured Loans

    • Competitive fixed-rate, unsecured business loans from £10,000 to £500,000 on terms from 6 months to 6 years
    • Perfect for business expansion, buying new equipment, hiring staff or managing cash flow
    • Get a decision in as little as 1 hour and funds typically in 48 hours
    • Minimum Turnover
      £25,000 p.a.
    • Available Amounts
      £10,000 to £500,000
    • Available Terms
      6 months to 6 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
  • Barclays Unsecured Business Loans logo

    Barclays Unsecured Business Loans

    • A quick and straightforward way to finance your business
    • Fixed interest rates, so you’ll always know what you’ll be paying
    • Take a six-month repayment holiday at the start of your loan (Interest will continue to accrue and will be included in your repayments) - only available on loans below £25,000
    • Minimum Turnover
      No minimum
    • Available Amounts
      £1,000 to £25,000*
    • Available Terms
      1 to 10 years*
  • Previse Unsecured Business Loans logo

    Previse Unsecured Business Loans

    • Instant Advance is a cash flow facility, designed specifically to help businesses grow
    • Funds from £10,000 - £500,000
    • Terms from 3, 6 and 9 months
    • Minimum Turnover
      £250,000 p.a.
    • Available Amounts
      £25,000 to £2,000,000
    • Available Terms
      3, 6 or 9 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
        £8,000 to £500,000
      • Available Terms
        1 to 5 years
    • Tide logo
      Broker

      Tide

      • Tide works with a number of partners who offer a range of flexible business funding solutions
      • They will run pre-eligibility checks, without affecting your credit score, to show you credit options tailored to your business
      • Connect your business bank account in minutes to see your credit options
      • Minimum Turnover
        Varies
      • Available Amounts
        £500 to £15,000,000
      • Available Terms
        1 month to 6 years
    • Fleximize logo

      Fleximize

      • YOUR BUSINESS MUST BE A LIMITED COMPANY WITH 6+ MONTHS' TRADING
      • Fast, hassle-free business loans of up to £500,000 for almost any purpose
      • Industry-leading flexibility – top-ups, repayment holidays, and penalty-free overpayments available on all loans
      • Award-winning customer service – rated 4.9/5 on Trustpilot
      • Minimum Turnover
        £120,000 p.a.
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        3 months to 5 years
    • YouLend logo

      YouLend

      • Your business must take on a minimum of £3,000 per month of card sales
      • YouLend is Europe's largest revenue finance provider - working with eBay, Shopify and Just Eat
      • YouLend funds over 5,000 UK SMEs every month including sole traders, partnerships and limited companies
      • Apply online in minutes, for a decision within 24 hours
      • Minimum Turnover
        £3,000 card sales per month
      • Available Amounts
        £3,000 to £1,000,000
      • Available Terms
        3 to 18 months
    • 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
    • NatWest logo

      NatWest

      • Flexible everyday business finance options with a variety of loan terms and repayment options to suit your needs
      • Borrow from £1,000 upwards with fixed and variable interest rates, no early repayment charges and no closure fees
      • Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only.
      • Minimum Turnover
        No minimum
      • Available Amounts
        £1,000 to £50,000
      • Available Terms
        1 to 7 years

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.

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