Loans Hub · Business Lending
Unsecured Business Loans
Borrow £5,000 to £500,000 with no assets at risk. Decisions in as little as 24 hours from a panel of UK lenders — including options for bad credit, sole traders and newer businesses.
Business loan repayment calculator
Illustration only, based on a fixed-rate amortising loan. Actual rates depend on your circumstances and lender.
What is an unsecured business loan?
An unsecured business loan is a fixed lump sum you borrow without putting up property, equipment or other assets as security. Instead of a legal charge over collateral, the lender bases its decision on your trading history, turnover, affordability and credit profile. You repay the loan in equal monthly instalments over an agreed term — usually between one and five years.
Because there is no asset valuation or charge to register, unsecured lending is fast and low-friction. Most UK lenders give a decision within 24 hours and release funds within one to two working days. That speed and simplicity is why thousands of UK SMEs use unsecured finance for cash flow, stock, recruitment, marketing and growth every year.
It is the most flexible product in our Loans Hub range, and a natural first port of call if you want capital quickly without risking your premises or kit.
How much can you borrow, and at what rate?
Most UK lenders offer unsecured facilities from £5,000 up to £500,000, with the upper limit typically capped at around one month of turnover. Representative APRs usually range from about 8% to 25%, depending on your credit profile, time trading and affordability. Use the calculator above to model monthly repayments before you apply.
- Newer businesses (under two years) can borrow, but expect smaller limits and higher rates.
- Established, profitable firms access the largest amounts and the keenest pricing.
- Bad-credit applicants are still considered — pricing reflects the added risk, and a personal guarantee is usually required.
Unsecured vs secured business loans
The right choice depends on how much you need, how quickly, and whether you have assets to pledge.
| Feature | Unsecured loan | Secured loan |
|---|---|---|
| Security required | None (personal guarantee common) | Property, equipment or other assets |
| Typical amount | £5k – £500k | £25k – £millions |
| Speed | 24–48 hours | 1–6 weeks (valuation/legals) |
| Rates | Higher | Lower |
| Risk to assets | No charge over assets | Asset can be repossessed |
If you need a very large facility and have assets to offer, a secured loan can be cheaper. For speed, flexibility and protecting your balance sheet, unsecured wins. Government-backed options are covered on our Growth Guarantee Scheme page.
Pros and cons at a glance
Advantages
- No assets put at risk
- Fast decisions and funding
- Fixed, predictable monthly repayments
- Available to newer and lower-turnover firms
- Spend on almost any business purpose
Things to weigh up
- Higher rates than secured lending
- Personal guarantee usually required
- Smaller maximum amounts
- Early-repayment charges on some products
Am I eligible? What you’ll need
To qualify for most unsecured business loans in the UK you’ll typically need to:
- Be a UK-registered business or sole trader trading for at least 6–12 months
- Show a minimum annual turnover (often £50,000+, though some lenders go lower)
- Provide 3–6 months of business bank statements
- Be willing to give a personal guarantee as a company director
Bad credit, CCJs and a short trading history don’t automatically rule you out — they simply narrow the panel of lenders and affect pricing. We match your profile to the lenders most likely to approve it.
How to apply in four steps
- Tell us what you need. Use the form below — amount, turnover and purpose take under a minute.
- We match lenders. We compare your profile against our UK panel with a soft search, so your credit score isn’t affected by enquiring.
- Review your offers. A funding specialist talks you through rates, terms and any guarantee.
- Get funded. Accept, complete a short application, and funds typically arrive within 24–48 hours.
It takes under a minute — and enquiring never affects your credit score.
Frequently asked questions
Can I get an unsecured business loan with bad credit?
Yes. Several UK lenders specialise in bad-credit business lending and will consider applications with CCJs or a low credit score. Expect higher rates and a personal guarantee, and borrow only what the repayments comfortably allow.
Do unsecured business loans require a personal guarantee?
Most do. A personal guarantee makes a company director personally responsible for the debt if the business cannot repay. It is not the same as securing the loan against your home, but it does carry personal risk, so read the terms carefully.
How fast can I get the money?
Unsecured loans are quick because there is no asset to value. Many lenders give a decision within 24 hours and pay out within one to two working days once your application and bank statements are approved.
Can a startup or sole trader get an unsecured loan?
Yes, though options are narrower. Lenders look for at least 6–12 months of trading and steady income. New businesses can also consider the government-backed Growth Guarantee Scheme, which is designed to help lenders say yes.
Will applying hurt my credit score?
Enquiring through us uses a soft search, which leaves no mark on your credit file. A hard search only happens once you choose a lender and proceed to a full application.
What can I use an unsecured business loan for?
Almost any legitimate business purpose — cash flow, stock, equipment, hiring, marketing, refurbishment, tax bills or refinancing more expensive debt. Lenders may ask for the purpose but rarely restrict how you use the funds.
How much can I borrow against my turnover?
A common rule of thumb is up to one month of turnover, so a business turning over £600,000 a year might access around £50,000. Strong profitability and trading history can lift that figure.
Are repayments fixed?
Yes. Unsecured term loans use fixed monthly repayments over the agreed term, making budgeting straightforward. Some lenders allow overpayments or early settlement, sometimes with a small charge.