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Unsecured Business Loans

An unsecured loan is a way of injecting cash into your business if you need help with working capital or general expenses.

Last updated: 05/02/2025

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 based solely on the borrower's creditworthiness, without the need for collateral. If your business lacks tangible assets or requires quick funding, an unsecured loan enables you to inject cash into your business without providing any physical security.

Since these loans present a higher risk for lenders, they rely on credit history and financial documents as the only assurances, rather than physical collateral.

Unsecured loans can vary in size and repayment terms, typically ranging from £25k to £2m over periods of 3 months to 6 years. However, because the loan is unsecured, you will likely need to provide a personal guarantee.

These loans are ideal for businesses that don’t have assets to use as security, have assets of little value, or prefer not to leverage their assets compared to a secured loan where security such as a property is required.

Additionally, unsecured loans often come with the flexibility of no penalty interest for early settlement, making them a versatile financing option.

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How does an unsecured business loan work?

Step 1 - 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.

Step 2 - 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.

Step 3 - 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.

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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.

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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].

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Unsecured Business Loan FAQs

What can I use an unsecured business loan for?

An unsecured business loan can be used for a variety of purposes, including expanding operations, purchasing equipment, managing cash flow, hiring staff, or funding marketing efforts. Since the loan is unsecured, no collateral is required, making it a flexible option for businesses that need quick access to capital without risking assets.

How much can you borrow with an unsecured business loan?

The amount you can borrow with an unsecured business loan depends on your business’s financial profile. Typically, businesses can borrow £25K up to £2M depending on the companies credit score and trading history.

Who should get an unsecured loan?

The amount you can borrow with an unsecured business loan depends on your business’s financial profile.

Unsecured business loans are ideal for businesses that need financing without using collateral and can be a suitable option in various situations:

For large business purchases – Major investments or expenses can put pressure on cash flow. An unsecured loan provides access to funds without putting business assets at risk.
For businesses with strong credit and financial stability – A high credit score and solid financial standing can help secure better loan terms and lower interest rates.
For businesses with consistent cash flow – While unsecured loans don’t require collateral, a steady income stream is essential to ensure timely repayments.

What documents do I need to provide for an unsecured business loan?

To apply, you will need to provide a range of documents to verify your business’s financial health. Common documents include your business’s latest financial statement, 6 months of company bank statements and full name, address, DOB and homeownership status of all directors.

What can I do to improve my chances of qualifying for an unsecured business loan?

To improve your chances, focus on strengthening your business's financial profile. This includes maintaining a strong credit score, demonstrating consistent revenue growth, and providing a solid business plan that outlines how the loan will be used. Lenders may also look for a good track record of managing debt and cash flow.

What's the different between unsecured and secured business loans?

An unsecured loan provides a cash flow boost without requiring company assets as collateral. However, this may result in a lower borrowing amount and higher interest rates due to the increased risk for the provider. Alternatively, a secured business loan is backed by valuable assets as security such as a property.

Can I get an unsecured business loan even if I have existing debt?

It is possible to get an unsecured business loan even if you have existing debt. However, having outstanding debt may affect your eligibility, as lenders will assess your ability to manage additional financial obligations. Lenders may also consider factors such as your credit score, cash flow, and your business’ overall financial health when deciding.

Why choose MAF Finance Group?

As a leading nationwide finance broker, we have access to a full market of funders, banks and alternative funders. With dedicated teams of sector specialists and industry specialists in the construction, healthcare, agriculture, renewables and fleet management sectors we can help all businesses with their funding requirements.