Unsecured business loans: no assets required, funds in days

An unsecured business loan is a form of commercial lending where no collateral, such as property, equipment, or other assets, is pledged as security against the debt. The lender assesses repayment ability based on your business's trading history, turnover, and creditworthiness. Because the lender takes more risk, interest rates are typically higher than secured lending, but the process is significantly faster and simpler.

Unsecured business loans typically range from £5,000 to £500,000. Secured business loans can go considerably higher — up to £5,000,000+. The upper limit depends on your business's annual turnover, profitability, credit profile, and whether you can provide security. Most unsecured lenders cap exposure at a percentage of annual revenue, commonly 10–25%. For loans above £250,000, some lenders require a debenture (a floating charge over the business) even if no fixed charge over property is required.

Many unsecured lenders require a personal guarantee (PG) from company directors, particularly for loans to limited companies. A PG makes you personally liable if the company fails to repay. This is different from securing the loan against personal assets. A PG is a promise to pay, not a charge. Some lenders on our panel do not require personal guarantees for established businesses with strong financials. We will always highlight which lenders require them.

They can be, but not always significantly so. The rate premium for unsecured lending depends on your credit profile. A strong business with clean credit and substantial turnover may access unsecured rates that are very close to secured. The key advantage of unsecured is speed and simplicity, not necessarily cost. We present total cost of credit for all options, secured and unsecured, so you can make a fully informed comparison.

Unsecured business loans are among the fastest forms of commercial finance. For straightforward applications, such as an established business with clean credit and a loan up to £150,000, decisions can be made within 24 hours and funds transferred the same or next working day. For larger loans or more complex profiles, decisions typically take 24–72 hours with payout following a few days after documents are signed.

Some lenders will consider businesses as young as 6 months, particularly if the director has a strong personal credit profile and the business is showing clear positive cashflow. Start-up lenders and government-backed schemes (such as the British Business Bank's Start Up Loans programme) also serve early-stage businesses. We will identify the most appropriate options for your trading age and profile.