Understanding unsecured business loans
A type of business cash flow loan which doesn't require security. This means you don’t need to use an asset to secure the funding.
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Pages in this SectionWhat is an unsecured business loan?
An unsecured business loan is a type of finance that allows businesses to borrow money without needing to secure it against assets such as property, equipment, or stock. This makes it an ideal solution for SMEs that require quick funding to support cash flow, invest in growth, or cover unexpected expenses without putting their assets at risk.
Unlike secured business loans, which require collateral, unsecured loans are based on business performance and creditworthiness, making them more accessible to a wider range of businesses.
How do unsecured business loans work?
Applying for an unsecured business loan is a simple process:
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Complete an online application: Provide basic business details, financial history, and loan requirements.
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Credit check: The lender conducts a credit check to assess the creditworthiness of the business and its owners.
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Receive a quick decision: Many applications are assessed within 24 hours.
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Get funds fast: Once approved, funds can be transferred to your business account quickly, helping you meet immediate financial needs.
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Make fixed monthly repayments: Repay the loan over an agreed term with fixed repayments, allowing for predictable budgeting.
Key features of an unsecured business loan
- Fast approval and funding – Get a decision in as little as 24 hours and access funds quickly.
- No early repayment fees – Pay off your loan early and save on interest without penalties.
- No collateral required – Keep your business assets protected.
Secured vs. Unsecured business loans: What's the difference?
Secured business loans:
- Collateral required
- Loans generally have higher limits
- Longer processing time to be approved
- Business assets may be at risk
- Eligibility is based on assets
Unsecured business loans:
- Lower loan limits
- Faster approval process
- No asset risk
- Eligibility is based on business performance
Have you thought about invoice finance as a cash flow solution for your business?
Invoice finance allows you to release cash quickly from your unpaid invoices.
As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available such as factoring (mainly invoice factoring and debt factoring) and invoice discounting to businesses depending on the situation and the level of control they require in collecting unpaid invoices.
We are an invoice financing company who offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our confidential invoice discounting solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.
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