Unsecured Business Loans
Do you need a fast loan but your business doesn’t own any assets? An Unsecured Business Loan may be the solution, giving you a fast and simple finance solution.
Unsecured Business Loan Guide
What Is An Unsecured Business Loan?
You can borrow up to £500,000, or more, with an Unsecured Business Loan, giving North Wales business owners a simple finance solution. As the loan is unsecured you don’t have to use machinery, property or other company assets as security.
Business loans like this are a flexible source of finance for businesses that don’t have or don’t want to use their assets as collateral. These loans can be arranged within days or even hours, to be repaid over an agreed term.
What Are The Benefits Of Unsecured Business Loans?
When your business needs a fast cash injection but doesn’t want to offer an asset as security for the loan, an Unsecured Business Loan could be the quick, easy and flexible finance solution you need.
How Do They Work?
Unsecured Business Loans are a way for your business to raise capital without the need for collateral. As with any sort of finance, the loan is paid back over an agreed term.
It’s not just long-standing businesses that can access these loans, newer companies can too. There are several advantages offered using Unsecured Business Loans.
Assets are not needed – As you don’t need to use assets as collateral for Unsecured Business Loans, the money can be in your account quicker than secured options. Not using security means loans can be easier to arrange than other forms of business finance.
Use them as you wish – There are no rules as to what you do with your loan. You may want to buy more stock, fulfil a large order or buy a new asset for your business, it’s up to you how you use it.
Quick approval and payout – By not using anything as security for the loan, the application process is sped up. Lenders can agree terms and have the funds with you within days, in some cases, hours. Your circumstances will dictate how much is available but loans of £500,000 and above are available on an unsecured basis.
Repayment terms are flexible – Our panel of lenders can give you a range of options to suit your needs. You can choose the term of the loan in months or years and the interest rate is set at the start. With no hidden fees you can easily budget the loan repayments.
Will My Business Qualify For A Business Loan?
For our panel of lenders, the minimum period of trading is 4 months and with a minimum turn over of £10,000 per year. This is not just for Limited Companies, sole traders may also be eligible for Unsecured Business Finance.
As we’ve covered, the loan is not secured against an asset but your personal credit and business history will be taken into account by lenders.
At least 4 months trading history
Have U.K. bank account
Sole traders, LLP or Limited company
Turnover at least £10,000 a year
To qualify for higher amounts of finance you may need to give a personal guarantee. If the business is not able to repay the finance, for whatever reason, you personally would be required to pay the loan back instead.
If this doesn’t work for you, it’s worth getting in touch with us to see what else we can do for you.
What Security Or Guarantees Do I Need To Provide?
It’s possible you and any other business owners will need to give a personal guarantee. These are legally binding agreements, making the business owner liable for the loan personally if the business isn’t able to continue making payments.
Becoming a guarantor sometimes will mean having a charge over your personal assets, this will vary depending on the lender and loan criteria. It is worth taking advice and discussing the responsibilities and expectations.
For Limited Companies and LLP’s, many funders will expect a personal guarantee from any director with a 20-25% share of ownership.
In the case of sole traders and partnerships, the credit worthiness of the person will be crucial to the lenders willingness to lend and at what level.
If I Have Poor Credit, Can I Still Get An Unsecured Business Loan?
While it can be more difficult to find finance for your business when you’ve had credit problems or a poor credit score, we have lenders who are still willing to help.
Even if your high street bank have said they can’t give you an Unsecured Business Loan, some of our other lenders may well still be able to fund you.
They understand businesses and that people can have credit problems for a variety of reasons. For instance, you may have a customer who hasn’t paid you on time which has meant you’ve not been able to pay your supplier.
Our panel of lenders can be a fantastic resource for you to draw from, so enquire with us today to see how we can help you and your business.
Compare Rates For An Unsecured Business Loan
Making sure you are getting a loan you are happy with, involves comparing loan rates from different funders. It isn’t just all about rate though. There are other factors to consider when deciding which loan to take.
Other aspects of a certain loan may make it more suitable for you, such as having a fast loan rather than going through the slower process of a bank.
Free To Use Unsecured Business Loan Calculator
You can use this free Unsecured Business Loan calculator to work out what the cost of the loan you’re interested in will be.
Please note, this calculator is intended for illustration purposes only. Exact payment terms should be agreed with a lender before taking out a loan.
Are We Regulated?
Coast Asset Finance is an Appointed Representative of AFS Compliance Ltd which is Authorised and Regulated by the Financial Conduct Authority. Many of our lenders are also regulated by the Financial Conduct Authority, though some business loan products are unregulated as they are not within the Financial Conduct Authority remit.
We only work with reputable lenders who have your interests at the heart of what they do and most are members of the NACFB (National Association of Commercial Finance Brokers).
Start your enquiry now, while you’re thinking about it. There’s no obligation and it’s free to find out if we can help.
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If you’d rather talk now, call
01492 233 808 and speak to Tim