Business Loans
Unsecured Business Loans

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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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

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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

See Deal + More info
Company details
- Free service matches your business with over 100 lenders in seconds
- Apply in 3 minutes and get funds in as little as 1 hour
- High acceptance rate
Eligibility Criteria
- Limited Companies only
- Must be trading in the UK
- Must have been trading for at least 12 months
- Defaults and CCJs not accepted
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

See Deal + More info
Company details
- Simple, secure and speedy search of 1,000 funding providers without affecting your credit rating
- Free access every type of finance including the Recovery Loan Scheme
- Online management allows you to find funding opportunities and track applications
Eligibility Criteria
- Must be based in the UK
- Must have an annual turnover of £50,000+
- Must have been trading for 12 months or more
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

See Deal + More info
Company details
- Access 70 lenders from one simple funding request
- Easily compare the choices available, including RLS options
- Apply with confidence, no impact on your credit score
Eligibility Criteria
- Your business must have been trading for a minimum of 2 years
- Your business must have an annual turnover of at least £100,000
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

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Company details
- Capify loans are paid back in very small automated regular payment; either daily or weekly
- A fast and easy business funding alternative for SMEs
- Funds can be used for any business purpose, from managing cashflow through to improving technology
Eligibility Criteria
- UK-based Limited Companies only
- Must process more than £10,000 a month through your business bank account
- Must have at least 12 months’ trading records
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

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Company details
- Fast and Flexible funding from £5,000 - £100,000 for Limited Companies within England and Wales
- No penalties for Late payments or Early repayment
- Apply and receive funds within 48 hours
Eligibility Criteria
- Must have a minimum Turnover of £4,000 per month
- Must have been trading for at least 3 months
- Must be a Limited Company trading within England and Wales
- Must have a UK Business Bank Account
- Director must control shares
- Up to 3 Directors (tolerance)
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

See Deal + More info
Company details
- Business finance broker working directly with businesses and their trusted advisors
- Quick and simple process – decisions and funds deposited same day
- 5-Star Trust Pilot Reviews – 50+ years combined market experience
Eligibility Criteria
- Limited Companies only, must be trading in the UK
- Minimum of 12 month trading history
- No Defaults or active CCJs
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

See Deal + More info
Company details
- Flexible finance for small businesses from £1000 to £200,000
- No long term commitments and flexible repayments to fit for your business
- Apply online in minutes for a decision (some decisions may take up to 24 hours)
Eligibility Criteria
- Limited companies only
- Sole-traders, partnerships and start-ups not currently accepted

Suppliers that don't offer Unsecured Business Loans but may offer suitable alternatives:

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

See Deal
Company details
- Nationwide Finance help 35,000 businesses get finance each year
- Direct funder - not a broker
- Same day decision, funds within 24 hours
Eligibility Criteria
- Nationwide Finance help 35,000 businesses get finance each year
- Direct funder - not a broker
- Same day decision, funds within 24 hours
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

See Deal
Company details
- 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
Eligibility Criteria
- 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
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

See Deal
Company details
- 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
Eligibility Criteria
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

See Deal
Company details
- Get between £10,000 and £300,000
- Pay back through your customer card transactions
- A single all inclusive charge that never changes
- No interest, APRs or hidden extras
Eligibility Criteria
- Your business must have been trading for at least 6 months
- Your business must accept debit and credit card payments
- Your business must take at least £10,000 per month in card transactions.

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