Unsecured Business Loans for UK Businesses

Flexible business funding without securing the loan against your property or other business assets.

Whether you need funding to manage cash flow, purchase stock, invest in growth or cover an unexpected cost, an unsecured business loan can provide access to capital without taking a charge over property.

At Fifty Nine Financial, we are an independent commercial finance broker based in Derby and supporting businesses throughout the UK. We work with a range of business lenders to find funding options suited to your circumstances, rather than relying on the criteria of a single provider.

Looking for business funding? Speak to us about your requirements and we’ll assess the options available.

What is an unsecured business loan?

An unsecured business loan allows a business to borrow without providing a property or other specific asset as security for the loan.

Instead, lenders will usually assess the strength of the business itself, including factors such as turnover, profitability, cash flow, trading history, existing borrowing and credit profile.

This can make unsecured lending particularly useful for businesses that do not own property, do not want to secure borrowing against an asset, or simply need access to funding quickly.

A personal guarantee from one or more directors or business owners may still be required. A personal guarantee is different from providing an asset as security for the business loan, but it can make the guarantor personally liable if the business does not meet its obligations.

What can an unsecured business loan be used for?

Business loans can be used for a wide range of legitimate business purposes, including:

• Working capital and cash-flow requirements

• Purchasing stock

• Business expansion

• Refurbishment

• Recruitment and staffing costs

• Marketing and investment

• VAT and other tax liabilities

• Equipment and technology

• Buying into an existing business

• Professional practice funding

• Business acquisition costs

• Refinancing existing borrowing

The appropriate type of finance will depend on what you’re trying to achieve. An unsecured loan isn’t automatically the best solution simply because it is available.

For example, an invoice finance facility could be more appropriate for a business with substantial unpaid invoices, while a commercial mortgage or secured business loan may offer a better structure where property is available.

Our job is to help you identify the most suitable route rather than trying to fit every business into the same product.

How much can my business borrow?

There isn’t one borrowing limit that applies to every business.

The amount available will depend on the lender and the strength of the application, including your turnover, profitability, cash flow, existing commitments, trading history and the reason for borrowing.

Established businesses with strong trading performance may be able to access substantially larger facilities than newer or smaller businesses.

Rather than relying on a generic online calculator, we can review the circumstances of your business and approach lenders whose criteria are appropriate for the amount and purpose required.

How quickly can an unsecured business loan be arranged?

One of the advantages of unsecured lending is that it can often be arranged more quickly than lending secured against property.

There is normally no property valuation or legal charge to complete, and some lenders can make decisions very quickly once they have the information they need.

Straightforward cases can sometimes receive a decision within 24 hours, although the actual timescale will depend on the lender, the size and complexity of the facility and how quickly any requested information is provided.

If speed is important, tell us at the outset and we can take that into account when considering lenders.

What will a lender look at?

Every lender has its own criteria, which is one of the main reasons using a commercial finance broker can be useful.

Depending on the lender and facility, they may consider:

• Annual turnover

• Profitability

• Recent business bank statements

• Cash flow

• Trading history

• Existing loans and other commitments

• Company and director credit history

• Balance sheet strength

• The purpose of the funding

• The amount requested relative to business performance

A weaker result in one area does not necessarily mean funding is impossible.

For example, some lenders place greater emphasis on recent bank-statement performance, while others may take a more detailed view of accounts, management information or the wider circumstances behind the application.

What documents will I need?

For an initial discussion, we normally only need enough information to understand your business, how much you want to borrow and what the money will be used for.

As the application progresses, lenders may request documents including:

• Recent 3 months business bank statements

• Latest filed accounts

• Details of any existing borrowing

• Assets, Liabilities, Income, Expenditure (ALIE) for Directors 

The exact requirements depend on the lender and the complexity and size of the facility.

We’ll let you know what’s required before an application is submitted wherever possible.

Do I need to own property?

Not necessarily.

The defining feature of an unsecured business loan is that the lender does not take security over a specific property or business asset as part of that facility.

That can make unsecured finance useful for businesses that do not own property or for owners who would prefer not to use property as security.

However, where property or other suitable assets are available, it can still be worth comparing unsecured borrowing with secured finance. Secured lending can sometimes provide access to different loan amounts, terms or pricing.

We’ll consider both routes where appropriate.

Will I need to give a personal guarantee?

Many lenders require at least one director or business owner to provide a personal guarantee, particularly for lending to limited companies.

A personal guarantee means that the guarantor may become personally liable for the guaranteed debt if the business fails to meet its obligations.

This is therefore an important commitment and should not be confused with a loan having no personal risk simply because it is described as unsecured.

The requirements vary between lenders and transactions, and you should understand the terms and consider obtaining independent legal advice before entering into a personal guarantee.

Can I get an unsecured business loan with bad credit?

Potentially.

An adverse credit history does not automatically prevent a business from obtaining finance, but it can reduce the number of lenders available and affect the terms offered.

The lender may want to understand what caused the credit issue, when it occurred, whether it has been satisfied and how the business is performing now.

Rather than making multiple applications, speak to us first. We can consider the circumstances and determine whether there are lenders whose criteria may accommodate the case.

Can newer businesses get an unsecured loan?

Yes, it is possible. Although established trading history generally gives lenders more information on which to base their decision.

Different lenders have different minimum trading requirements, and some are prepared to consider younger businesses where there is sufficient evidence that the borrowing is affordable.

Very early-stage businesses may need a different type of funding altogether.

We’ll tell you if we think an unsecured business loan is realistic before progressing an application.

Business loans for professional and healthcare businesses

We arrange commercial finance across a wide range of UK industries, with particular experience in professional and healthcare businesses.

This includes funding for:

• Dental practices

• Pharmacies

• Medical and healthcare businesses

• Accountancy firms

• Solicitors and other professional practices

• Veterinary businesses

• Care businesses

Professional businesses can sometimes have funding requirements that don’t fit neatly within standard lending criteria. Understanding the business model and presenting the case properly can therefore be just as important as finding a competitive rate.

Recent unsecured business loan: £250,000 approved

We recently arranged a £250,000 unsecured business loan for an established car dealership to support working capital and stock purchasing. The client wanted a cash lump sum to help with a fast-paced environment where other types of finance can feel too restrictive.

The business had previously been declined for funding elsewhere. After reviewing the circumstances, we identified an alternative lender whose criteria were better suited to the business and secured approval within 48 hours.

This is a good example of why a decline from one lender doesn’t necessarily mean that funding isn’t available elsewhere.

Business loans in Derby and across the UK

Fifty Nine Financial is based in Derby, and we regularly help businesses in Derby and Derbyshire access commercial finance.

However, our service isn’t restricted geographically. We arrange commercial funding for businesses throughout the UK and can manage the process remotely from initial enquiry through to completion.

So whether you’re looking for an unsecured business loan in Derby or funding for a business elsewhere in the UK, we can assess the same range of lending options available to us.

Why use Fifty Nine Financial?

Going directly to one lender gives you access to one lender’s criteria.

As an independent commercial finance broker, we can consider a range of lenders and identify options suited to the circumstances of your business.

We can also help with the part that is often overlooked: understanding the case before it reaches the lender.

That includes establishing what you’re trying to achieve, considering the most appropriate type of finance, identifying potential issues and presenting the application to an appropriate lender.

If an unsecured loan isn’t the right solution, we’ll tell you.

Depending on the circumstances, we may instead consider options such as secured business lending, invoice finance, asset finance, commercial mortgages or other forms of commercial funding.

You should also check out our online reviews to hear from our happy clients! 

Speak to an independent business finance broker

If you’re considering an unsecured business loan, tell us:

• How much you need, 
• What the funds are for 
• A simple explanation of your business

We’ll assess your requirements and discuss the funding options that may be available.

Get in touch with Fifty Nine Financial to discuss your business funding requirements.