Unsecured Business Loans are essentially a business loan not secured against any ‘hard’ assets… it is simply secured against the trust in your businesses performing.
The increased risk to the lender is often reflected in the interest rate.
It is a loan secured/based solely on the value of the business’ turnover
With a many lenders in the market able to offer competitive unsecured loans up to £1,000,000, there are options for a wide variety of circumstances.
What is an Unsecured Business Loan
An Unsecured business loan is a business loan that doesn’t require any security. A secured loan uses business assets or business and personal property as its security — this means if things do not work out with regards to repayments, the lender can legally take ownership and sell those assets to re-coup the value of the loan. The difference between secured & unsecured loans is really all about risk for the lender.
- Much faster - no valuations necessary
- Rates from as low as 4.9% APR - 1.1% (Flexible Facility)
- Personal Guarantees sometimes required
- Loans up to £1,000,000
- Less fees
- Overall Interest rate usually higher, because the lender has a higher risk