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Unsecured business loans
Get an unsecured loan and borrow without putting property or equipment on the line:
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Why work with Capitalise?
200,000 UK businesses trust us
Business credit data powered by Experian
£2bn in funding approved
FCA regulated since 2015
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What is an unsecured business loan?
An unsecured business loan is structured so that you can borrow money without pledging assets as collateral. Instead of relying on property or equipment as security, lenders base their decision on your business’s creditworthiness and financial health. They assess factors such as your business credit score, revenue, cash flow, and overall stability before approving the loan.
The risk for lenders is higher with unsecured loans. Because of this, interest rates may be higher compared to secured loans. However, the application process is often simpler and quicker, providing faster access to funds.
What can you use an unsecured business loan for?
Maintain healthy cash flow
Access working capital to cover everyday expenses and smooth over seasonal or unexpected gaps.
Secure essential stock
Purchase materials or inventory in advance so you can meet customer demand without disruption.
Hire staff
Hire new staff or invest in training to build capacity and improve long term performance.
Expand with confidence
Fund new premises, equipment or facilities to support growth and take on larger projects.
Invest in business growth
Use funds to invest in marketing, technology or innovation that helps you reach more customers and scale effectively.
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How do unsecured business loans work?
With an unsecured business loan, the lender gives your business fast access to capital, often as an upfront lump sum. The application process is typically straightforward and can often be completed online, with some lenders transferring funds in as little as 48 hours.
After receiving the funds, your business repays the loan over an agreed period, usually through fixed monthly instalments. Some lenders let you repay early, though they may charge a fee.
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Who can get an unsecured business loan?
Most lenders are open to funding a wide variety of businesses and sectors. Limited companies, and partnerships can all apply, and unsecured loans are commonly available across industries ranging from retail and hospitality to professional services and manufacturing. To be eligible, lenders typically expect your business to have:
If you meet these criteria, an unsecured loan can provide a fast and flexible way to support your plans.
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How to get an unsecured business loan?
With Capitalise, simply complete one short online application to access multiple lenders at once.
Our funding specialists will guide you through the process, helping you compare offers side by side and choose the right option for your business. To apply, you’ll usually need:
What are the advantages and disadvantages of unsecured business loans?
Advantages | Disadvantages |
Businesses can get access to capital, without risking their assets. | Without a collateral, they can come with higher interest rates. |
The approval process for unsecured loans is much faster. | The maximum loan amount for unsecured loans are typically lower than those for secured loans. |
Unsecured loans typically involve less paperwork, simplifying the application process. | Lenders generally require higher business credit scores for unsecured loans, making it difficult for businesses with poor credit to qualify. |
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Secured vs unsecured business loans: Key differences
Business loans generally fall into two main types: secured and unsecured.
Secured loans require collateral (valuable assets like property, vehicles, or equipment).
Unsecured business loans, on the other hand, don’t require any collateral. Instead, lenders assess your business’s financial health and creditworthiness.
Unsecured loans are typically faster to access but often come with higher interest rates and shorter repayment terms. They’re considered riskier for lenders, but can be more flexible for businesses that need quick funding.
What types of unsecured business loans can I apply for?
Term loan
An unsecured business term loan provides a lump sum of money upfront. This is repaid by the business over a fixed term with regular payments. The length of the terms can vary depending on the business and lender, it can range from a few months to 5 years.
Revolving credit facility
A revolving credit facility gives you access to a predetermined amount of funds that you can draw from as needed. Interest is only charged on the amount you borrow, and you can repay and reuse the funds within the credit limit.
Business credit card
Business credit cards are a type of unsecured business loan. Businesses typically use it to cover everyday expenses. They offer a revolving line of credit, allowing you to make purchases and repay the balance over time.
Merchant cash advance
Merchant cash advances are unsecured business loans that provide a lump sum of cash. Repayment is not fixed but a predefined percentage of your future sales. Lenders typically deduct a fixed percentage from your monthly credit card sales until the advance is repaid.
Apply today for an unsecured business loan and compare offers from 130+ lenders