Getting a business loan doesn’t always mean putting assets on the line. For many business owners, especially those without property or high-value equipment, securing finance without offering security can feel impossible. But the good news is, unsecured business loans are available and they’re more flexible than you might think.
In this guide, we’ll walk you through what an unsecured business loan is, who qualifies, and how to improve your chances of approval.
What is an Unsecured Business Loan?
An unsecured business loan is funding that doesn’t require property, vehicles or other business assets as collateral. Instead of relying on security, lenders assess your company based on its trading history, turnover, cashflow and overall affordability.
That means faster decisions, less paperwork, and more options for businesses with limited assets.
Who Offers These Loans?
Unsecured loans are typically offered by alternative lenders, fintech platforms and specialist business finance providers. Traditional banks tend to avoid these types of deals, especially for SMEs.
At Essex Capital Finance, we work with a range of UK lenders who provide unsecured funding for:
- Working capital
- Growth investment
- Tax bills or cashflow gaps
- Contract fulfilment
Who Can Qualify?
You don’t need to be a large or long-established company to qualify. Most lenders will look for:
- UK limited company or LLP
- 12+ months of trading history
- £10,000+ monthly turnover
- Clean bank statements
- A reasonable credit profile for the business and its directors
In some cases, lenders may request a personal guarantee, but not always.
How Much Can You Borrow?
Unsecured loan amounts usually range from £10,000 to £350,000, depending on your turnover and the strength of your business. Some lenders will offer up to 60% of your annual revenue.
Loan terms typically range from 6 to 60 months.
What’s the Catch?
Interest rates are often higher than secured loans, because lenders take on more risk. However, the speed and simplicity make unsecured loans a smart option for businesses that need fast access to funding without lengthy valuations or asset checks.
How to Apply Without the Hassle
Applying directly to lenders can be time-consuming. Every lender has different criteria, forms and expectations. A broker like Essex Capital Finance helps streamline the process.
We match your business with lenders that are right for your industry, stage and goals. This saves time and improves your approval odds.
Final Thoughts
Unsecured business loans are no longer a last resort. For many SMEs, they are the fastest and most flexible way to get the funding they need.
