What is an unsecured business loan?

An unsecured business loan allows borrowing based on trading performance with fixed monthly payments. No assets are taken as security. Typical amounts range from £5,000 to £500,000 over 6 to 24 months. Approval relies on turnover, accounts, and banking history rather than property or equipment.

Benefits

Unsecured lending does not place business assets at risk and offers predictable fixed repayments. The process is straightforward, usually requiring accounts and bank statements. Funds can support working capital, stock, marketing, or opportunities. It suits established businesses with consistent income and clear repayment capacity.

Potential things to consider

Interest rates can be higher because no security is provided, and personal guarantees are often required. Repayments start immediately, which may affect cash flow. Shorter terms mean higher monthly payments. It is important to ensure trading performance comfortably supports the borrowing commitment.

What is a revolving credit facility?

A revolving credit facility provides access to an agreed credit limit that can be drawn down as needed and repaid over time. Interest is charged only on the amount used. Typical limits range from £10,000 to £250,000 with flexible terms based on trading activity.

Benefits

This facility offers flexibility for managing cash flow, allowing funds to be used only when required. Businesses pay interest solely on what they draw. It suits seasonal trading patterns and short-term working capital needs, while avoiding repeated applications for separate loans.

Potential things to consider

Interest rates may be higher than traditional loans, and fees can apply to unused limits. Careful monitoring is needed to avoid over-reliance. Because balances can fluctuate, repayments may be less predictable than fixed-term borrowing, requiring disciplined cash flow management.

What is invoice finance?

Invoice finance allows a business to release cash tied up in unpaid invoices. Lenders typically advance up to 90% of invoice values, providing working capital while customers take time to pay. The facility grows in line with sales and outstanding debtor balances.

Benefits

This option improves cash flow without creating traditional debt. Funding increases as sales grow, supporting expansion. It reduces pressure caused by slow-paying customers and provides predictable access to working capital based on confirmed invoices and trading activity.

Potential things to consider

Fees are charged against invoice values, which can reduce overall margins. Customers may become aware of the arrangement depending on the facility type. It requires organised credit control processes and is less suitable for businesses with low invoice volumes.

What is asset finance?

Asset finance enables businesses to acquire vehicles, machinery, or equipment without paying the full cost upfront. The asset itself acts as security, and payments are spread over an agreed term. Options include hire purchase, leasing, and refinancing existing equipment.

Benefits

This funding preserves cash flow while allowing access to essential equipment. Fixed repayments support budgeting, and tax advantages may apply. It is suitable for businesses needing to upgrade or expand assets without affecting working capital or overdraft facilities.

Potential things to consider

The asset is used as security, and missing payments may result in repossession. Agreements can be inflexible if needs change. Overall costs may be higher than purchasing outright, and maintenance responsibilities usually remain with the business.

What is a merchant cash advance?

A merchant cash advance provides funding repaid as a small percentage of daily card takings. It suits businesses with regular card transactions and seasonal fluctuations. There is no fixed term, and repayments rise and fall in line with sales performance.

Benefits

Repayments automatically adjust to trading levels, reducing pressure during quieter periods. There are no fixed monthly amounts, making it helpful for hospitality, retail, and service businesses. Approval is often based on card turnover rather than traditional lending criteria.

Potential things to consider

The overall cost can be higher than standard loans, and repayments depend on consistent card sales. It may not suit businesses with low card transaction volumes. Careful review is needed to ensure the percentage deducted remains affordable during busy periods.

What is a commercial remortgage?

A commercial remortgage allows property owners to refinance existing business premises to release equity or secure better terms. The property acts as security, and funds can be used for growth, improvements, or restructuring existing borrowing arrangements.

Benefits

This option can reduce monthly costs, release capital tied in property, and provide longer repayment terms. Interest rates are often lower than unsecured lending. It suits established businesses with valuable premises and long-term financial planning needs.

Potential things to consider

The property is used as security, creating risk if repayments cannot be maintained. Legal and valuation costs apply, and approval times can be longer. Market conditions and property values influence how much can be released.

We are not a lender. We act as an introducer, helping businesses compare suitable finance options from a panel of UK lenders. This allows you to see multiple offers without approaching each lender individually. Our role is to match your circumstances with appropriate funding solutions in a simple, transparent way.

Checking your options does not affect your credit score. Initial assessments are completed using a soft search, which is not visible to other lenders. A full credit search is only carried out if you decide to proceed with a specific offer and formally apply for funding.

Once approved and documents are completed, funds can often be received within 24 to 48 hours. The exact timing depends on the lender, the type of finance selected, and how quickly required information is provided. Having documents ready can help speed the process considerably.

We do not charge you fees for comparing finance options. We receive a commission from the lender when funding completes. This does not affect the cost of your finance. All terms, rates, and any lender fees are shown clearly before you decide to proceed.

Many unsecured business finance options require a personal guarantee from directors. This provides reassurance to the lender where no assets are used as security. The requirement depends on the product, amount borrowed, and your business profile. This will always be explained clearly before proceeding.

Most applications require recent bank statements, basic business details, and either filed accounts or management figures. You may also need to provide identification and proof of address for directors. Having these documents ready helps lenders assess your application more quickly and accurately.

The amount available depends on your turnover, profitability, banking history, and existing commitments. Lenders assess affordability based on trading performance rather than estimates. This ensures that any borrowing offered is manageable and appropriate for your business’s current financial position and cash flow.

Rates vary depending on the type of finance, the lender, and your business profile. Offers are tailored to your circumstances and clearly show the total repayable amount. This allows you to understand the full cost before deciding whether the funding suits your needs.

If you experience difficulty, it is important to speak with the lender as early as possible. Many lenders will discuss temporary arrangements where appropriate. Ignoring the situation can lead to additional charges or recovery action, particularly if a personal guarantee has been provided.

The most suitable option depends on how your business operates and what the funds are needed for. Some solutions support cash flow, others fund assets or growth. Comparing options helps ensure the structure, repayment style, and costs align with your trading pattern.