Unsecured Business Loans

Unsecured business loans for UK businesses

Unsecured business loans can be an appealing option for asset-light businesses that require quick access to capital. An unsecured business loan can offer flexibility and freedom that other finance products can't provide.

At MAF Finance Group, we have a large panel of lenders and explore the entire market to find the right solution for you. Regardless of your business loan requirement we will deal with the whole process through from start to finish allowing you to continue day-to-day business operations.

What is an Unsecured Loan?

An unsecured loan is a type of business loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. If your business doesn’t own any tangible assets or needs money quickly, an unsecured loan allows you to inject cash into your business without any tangible security.

These loans tend to be a higher risk for lenders, with credit history and financial history documents being the only assurances available to them, without any physical collateral.

Unsecured loans can vary in size and repayment terms but usually range from anywhere from £10k to £2m over 3 months to 6 years.

However, because it is an unsecured loan, it’s likely that you will have to offer a personal guarantee.

Unsecured loans are great for businesses that don’t have any assets to put down as security, have assets with little value, or simply don’t want to.

Generally, there is no penalty interest for early settlement which makes unsecured loans a versatile facility.

How does an unsecured business loan work?

Once you contact us, we will ask you to send over some information. Depending on your business and what you’re planning on using the loan for, this could include your latest set of accounts, last 6 months’ bank statements and personal details of any directors.

After confirming the above information, we will apply to our wide panel of funders, who will usually come back with an answer in 48 hours. Identification checks and know your customer requirements will also need to be carried out on the business and the directors.

When you confirm you wish to proceed with the terms and conditions of the unsecured loan, you will be sent the documentation for your signature and return. Once all final checks have been carried out the funds are then released to you.

The time it takes to release the funds can vary from funder to funder, ranging from 24 to 72 hours later.

Benefits of unsecured loans

Some of the benefits of using an unsecured loan are:

• More flexible funding options compared to a secured loan.
• Faster application process.
• No collateral required.
• Quick approval and access to cash.
• Competitive rates for those with strong credit.
• Repayment holidays.
• No early repayment fees.
• Easy top up options.
• Short term benefits to borrowing.
• Refinance existing business loans.

What can I use an unsecured business loan for?

An unsecured loan is used to raise cash for a wide number of purposes mainly to support a businesses growth plans, for working capital or expansion.

Other uses for an unsecured loan include:

• Payroll
• Making a one-off payment
• Purchase stock
• Business cashflow
• Tax bills
• Pay suppliers
• Hire additional staff
• Consolidation of debts

Am I eligible for an unsecured business loan?

We would be happy to consider a wide range of businesses for an unsecured loan.

Ranging from new startups to established companies we can help most businesses with funding lines.

However you must have a UK-based business and operate as a limited company or a partnership.

Startup businesses with no trading history are limited to a maximum credit limit of £10,000.

Things to consider for an unsecured loan

Some things to consider before proceeding with an unsecured loan are:

Amount: Unsecured loans are limited to a minimum of £10,000 up to £2m.

Guarantees: Personal guarantees will be required

Purpose: This type of loan is best used for working capital or investment.

Age: Your business will need to be at least 12 months old to qualify.

Early Settlement: No penalty interest for early settlement.

How to apply for an unsecured loan

MAF Finance Group works with a wide panel of banks and alternative funders and can assess which funder provides the most competitive financial solution for you.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].