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Compare Unsecured Business Loans

Loans for businesses of every size and industry, from top UK lenders including:

7 providers

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  • Portman Asset Finance logo
    Broker

    Portman Finance Group

    • Loans for any business purpose, from cashflow to new equipment, vehicles or expansion
    • Term business loans, recovery loans, short-term and flexible funding, asset finance, vehicle finance
    • Dedicated account managers to guide you, understand your business and find solutions tailored to your needs
    • Minimum annual turnover
      £100,000
    • Available amounts
      £10,000 - £2,000,000
    • UK Available terms
      3 months - 6 years
    See Deal
    • iwoca logo

      iwoca

      • Flexible finance for small businesses from £1,000 to £1,000,000
      • No long-term commitments and flexible repayments to fit your business
      • Apply online in minutes for a quick decision (some may take up to 24 hours). Applying won’t affect your credit score
      • Minimum annual turnover
        £10,000
      • Available amounts
        £1,000 - £1,000,000
      • UK Available terms
        0 months - 2 years
      See Deal
    • 2 more from iwoca
  • Barclays 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 the loan (interest will continue to accrue and will be included in your repayments). Only available on loans below £25,000
    • Minimum annual turnover
      No minimum
    • Available amounts
      £1,000 - £100,000
    • UK Available terms
      12 months - 10 years
    See Deal
  • 365 Finance logo

    365 Finance Merchant Cash Advance

    Credit/debit card sales required
    • Pay back via a small % of future card sales
    • No security or business plans required
    • One all-inclusive cost. No admin fees, APRs or extras
    • Minimum annual turnover
      £120,000
    • Available amounts
      £10,000 - £400,000
    • UK Available terms
      4 - 18 months
    See Deal
  • YouLend logo

    YouLend Cash Advance

    Credit/debit card sales required
    • Optimise your cash flow and make repayments in line with your sales
    • No interest rate is charged, just a one-time fixed fee
    • Minimum annual turnover
      £36,000
    • Available amounts
      £3,000 - £1,000,000
    • UK Available terms
      1 - 18 months
    See Deal
    • Funding Xchange logo
      Broker

      Funding Xchange

      • Funding Xchange can compare multiple lenders from one simple funding request
      • Get instant and personalised loan offers in just 3 minutes
      • Easily compare terms available and the search won’t affect your credit rating
      • Minimum annual turnover
        £10,000
      • Available amounts
        £1,000 - £1,000,000
      • UK Available terms
        1 month - 6 years
      See Deal
    • 4 more from Funding Xchange
  • Capify logo

    Capify Unsecured Business Loan

    • Unsecured business loan. No assets or security required
    • All credit profiles considered
    • Same day approvals & funding possible in 24 hours
    • Minimum annual turnover
      £120,000
    • Available amounts
      £5,000 - £750,000
    • UK Available terms
      3 - 18 months
    See Deal

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

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.

Other comparisons

What is a business loan?

A business loan is a form of finance that can be used to help support and expand your organisation.

As with personal loans, you borrow a sum of money, and pay it back, with interest.

One of the most important differences between personal loans and business loans is that with a personal loan, you will be personally liable for repaying the amount you have borrowed.

With a business loan, as long as the appropriate company structure is in place, that responsibility falls to the business instead. This will not be the case, however, if you are a sole trader, or you have secured your business loan with a personal guarantee.

You can also typically borrow more through a business loan, while the interest payments on your business loan may be tax deductible unlike payments on a personal loan.

Types of business loan

Secured business loans

Secured business loans require that you put down an asset such as property as security. Secured loans often come with lower interest rates than unsecured loans as they represent less risk for the lender. They may also give you access to a larger loan amount over a longer term. However, secured loans come with the added risk that you could lose your assets if you miss the payments.

Compare secured business loans

Unsecured business loans

Unsecured business loans are a type of finance that does not require security. These types of loans tend to have higher interest rates because there is a greater risk of the lender losing money if you can't pay off what you owe. Unsecured business loans also require a good financial history and credit rating as evidence that the business will be able to repay the loan.

Compare unsecured business loans

Government loans

There may be government-backed business loans you can access. Examples include the Recovery Loan Scheme, introduced to help with the financial stresses caused by the Covid-19 pandemic, which has now been extended. What schemes are available can vary depending on government policy and changing economic circumstances across the country. So it can be useful to regularly check the Department for Business, Energy & Industrial Strategy's search tool for guidance on the business loan schemes available in your region.

Start up business loans

The Start Up Loan Scheme is a government-backed fund that currently offers personal loans of up to £25,000 to UK businesses owners that have been fully trading for less than 36 months or those looking to start a business. You can apply for free, and there are no early repayment charges. If your application is successful, you'll also get up to 12 months of free mentoring. Government Start Up Loans have a fixed annual interest rate of 6% and must be repaid over a period of one to five years.

Compare start up business loans

Small business loans

Small business loans are for start ups and small businesses to access funding. They can be used for a variety of purposes from hiring new staff to managing cash flow. As with all loans, small business loans are repaid over an agreed time period with interest. Large business loans tend to be cheaper than small business loans because there is less perceived risk with lending to a bigger company.

Compare small business loans

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.

Pros and cons of unsecured business loans

Pros

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.

Cons

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.

How to 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

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.

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.