Fill in the details to see an instant example of our rates
Unsecured Business Loans
- All UK SMEs Considered
- No Collateral Required
- Quick & Easy Access to Funds
- Apply between £10k to £500k
-
Both a Lender & Broker
-
Over £1.5bn financed since 2007
-
Expert Personal Service
Boost your cashflow without using your company assets as collateral
Need a flexible funding solution for your business, without the hassle of collateral? Our unsecured business loans offer a straightforward way to access the capital you need, allowing you to invest in your company’s growth and success. An unsecured loan is a fast and affordable cash injection solution for UK SMEs.
Unsecured Finance in 3 Fast Steps…
How Unsecured Business Loans Work?
An unsecured loan is an excellent choice for businesses without assets suitable for use as collateral, as it allows you to get the finance injection you need without the risk to your valuable, money-making assets.
It works by providing upfront capital without a security requirement. There are several unsecured business loan options available, each with separate requirement details as part of the agreement. You can choose the options best suited to your business and requirements and may even receive funding within 48 hours.
Once the term agreement is in place, you’ll make payments on your loans in monthly or quarterly instalments.
Use our finance calculator for a more detailed idea of what your unsecured business loan repayments might look like.
An Unsecured Loan with a Personal Guarantee (PG)
Unsecured loans can be attractive but carry inherent risks for lenders. To mitigate these risks and enhance the lender’s confidence in the loan’s repayment, lenders often require smaller loan amounts and higher interest rates.
A personal guarantee can help to offset these risks and provide additional security for the lender. As a director, you may be asked to provide a personal guarantee, irrespective of your personal creditworthiness. However, this means you are personally liable for the loan’s repayment, including interest, should the company default.
How can I apply for an Unsecured Loan?
Lenders will require a minimum of the following for an unsecured business loan:
- Bank Statements
- Trading History
- Filed Accounts
- Profit & Turnover
- Payment History
- Business Plan
- Customers
Is an Unsecured Commercial Loan right for my business?
What can I use an Unsecured Loan for?
An unsecured commercial loan offers the same flexibility as a traditional business loan, providing businesses with quick access to capital. The difference of unsecured business loans is getting finance without the need for collateral.
Common uses for unsecured business loans include:
- Purchasing new equipment or property – Expand operations or upgrade your business infrastructure.
- Upgrading equipment or machinery – Keep your business competitive with the latest technology or machinery.
- Buying inventory – Ensure you have enough stock to meet customer demand.
- Paying employees – Maintain your workforce during slow periods or unexpected situations.
- Managing cashflow – Smooth out day-to-day financial operations during revenue fluctuations.
- Making strategic investments – Capitalise on growth opportunities without dipping into reserves.
- Covering emergency expenses – Access funds when facing unplanned costs.
- Navigating seasonal fluctuations – Manage cash flow during off-seasons or periods of low demand.
- Paying tax bills – Stay on top of your tax obligations without disrupting business operations. (If you are looking to spread the cost of a Corporate tax bill, or VAT loan, we provide personalised business finance options. Get in touch with Portman for more information.)
An unsecured business loan gives your business the flexibility to handle both planned and unexpected expenses, ensuring you stay ready in the market.
Types of Unsecured Business Finance
- Merchant Cash Advance (MCA) – This loan is repaid as a percentage of your customer card sales, adjusting with your business revenue. It’s ideal for businesses that need flexible repayment terms and can be used for working capital, stock, repairs, or upgrades.
- Revolving Credit Facility – A revolving credit line allows you to withdraw, repay, and borrow again as needed, providing flexibility for businesses managing fluctuating cash flow. It’s commonly used for product development, staff recruitment, or covering emergency expenses. For more about this type of finance product, see our article: Revolving Finance 101: Understanding the Basics & Benefits
- Business Overdraft – A business overdraft offers short-term funding by allowing you to overdraw your account, with interest charged on the overdrawn amount. It’s typically used for managing cashflow, unexpected bills, or one-off expenditures.
- Business Credit Cards – Business credit cards provide flexible access to funds for day-to-day expenses, employee-related costs, and emergency situations. They’re best suited for businesses with consistent cashflow and are ideally repaid monthly to avoid interest charges. See our article for A Guide to Choosing the Right Business Credit Card
What is the difference between Secured & Unsecured Loans?
Secured vs. Unsecured Business Loans
Portman offers both secured and unsecured types of business loans. Which works best for your business?
- Secured loans require you to pledge an asset, such as equipment or property, as collateral. This can typically lower your interest rate but puts the asset at risk if you default. Asset finance is an example of this option.
- Unsecured loans do not require collateral but may have a higher interest rate. To qualify for an unsecured loan, you may need to provide a personal guarantee meaning the owner takes responsibility for repayment if the business can’t.
Secured vs. Unsecured at a glance…
| Secured Loan | Unsecured Loan | |
|---|---|---|
| Collateral Required | Yes | No |
| Interest Rate | Lower | Higher |
| Risk to Business | Asset at Risk if Default | No Asset Risk |
| Security | Uses the Asset | Usually PG or Debenture |
| Early Repayment | Yes | Yes |
Both options offer flexibility in managing your finances. You’ll repay the loan with regular payments and own any equipment purchased with the funds. The majority of business loans arranged by Portman are unsecured but many options are available.
Other Unsecured Business Finance Solutions
In addition to unsecured commercial loans, businesses have access to a variety of unsecured financing options designed to meet different needs and situations.
Alternative Business Finance Options
We offer a range of business financing options tailored to UK SMEs. If you’re unsure whether an unsecured business loan is the best fit for your needs, explore some of our other popular business financing alternatives below.
Alternatively, explore all of our available Business Finance options or get in touch to see how Portman can help.
Unsecured Business Loan FAQs
Still trying to determine if an unsecured business loan is right for your company? Learn more about this cash flow injection and what is involved in the answers to our most frequently asked questions. Don’t forget to contact us today if your query has not been addressed here, and we will be happy to offer more advice and guidance.
What’s the difference between secured and unsecured business loans?
An unsecured loan allows you to get a cashflow injection without using company assets as collateral. This does however, mean you may be offered a decreased borrowing amount with higher interest rates as the lenders are more at risk. The alternative is a secured business loan that uses your valuable assets as security. With secured business loans, if you don’t make the agreed repayments your assets could be seized to pay off the debt.
Find out more about business loan options from Portman for more information.
What happens if I miss a monthly payment?
If you default on repayments for an unsecured business loan, your business will still face serious problems despite not losing company assets. Although your money-making assets will be safe, some penalties will cause just as much damage to your business. For example, you could be fined and have to pay additional fees incurred to administer the default. You will also experience a considerable hit to your credit score, which could make it more difficult for you to access business finance in the future.
Can a start-up get an unsecured business loan?
Yes, a start-up or small business can get an unsecured business loan.
A Start-up businesses typically may find it more difficult to obtain business finance due to their lack of trading history and business assets. Loans for start-up businesses will typically be for a smaller amount and rates may be higher to reflect the risk of business failure. If you need a larger loan amount, you will need a strong cash flow position, demonstrable trading history and growth with a balance sheet that shows you can make repayments.
How Much Can You Borrow with an Unsecured Business Loan?
The amount you can potentially borrow with an unsecured business loan depends on your unique business standing.
Factors which impact the amount you can borrow with an unsecured business loan include your business credit score and trading history. Suppose you’re requesting a particularly large business loan. In that case, it is worth noting that you will need a long trading history, a balance sheet that meets repayment requirements and a strong cash flow position.
Could your credit score be improved? You may also need to demonstrate a period of sustained growth. Small businesses or early-stage businesses are also unlikely to be granted a large-scale unsecured loan.
Who should get an unsecured business loan?
Unsecured business loans are ideal for businesses that need financing but prefer not to pledge collateral. They may be a good option in the following situations:
- For large business purchases – When planning a major investment or expense, taking on debt can strain cash flow. An unsecured loan provides access to funds without putting business assets at risk.
- For businesses with strong credit and financial stability – A high credit score and healthy financial standing can qualify you for better loan terms and lower interest rates. If your credit score is lower, lenders may either decline your application or offer higher rates due to the increased risk. If you are looking to improve your business credit score, read our helpful guide – Business Credit Score: Why It Matters & How to Improve It
- For businesses with consistent cashflow – While unsecured loans don’t require collateral, your business still needs a reliable income stream to manage timely repayments. Defaulting on an unsecured loan can damage your credit and limit future financing opportunities.
This type of business finance is best suited for companies with a solid financial foundation and a clear repayment strategy.
If you’re unsure of what financing may be most suitable for your business, read our article for tips and your options – Business finance: What is right for me?
Our experts can find the right funding for you.
A professional, personal service every time…
Ian WalkerWe spoke with Portman Finance Group ahead of a requirement for some additional funds for a project, they clearly went through all the options and provided credible solutions
Barbara YoungExcellent service from Rob Wolfe who provided a number of options for our requirements. Seamless process to implement the chosen option.
Joe SopherVery easy to deal with. Understood my needs and worked to present quick and effective solutions. Would definitely recommend and David was extremely helpful !
Calvin MashJoe provided exceptional assistance during your loan process! His helpfulness and impressive service clearly made a positive impact on my experience. I appreciated his efforts—having someone knowledgeable and supportive can make a significant difference in navigating financial matters.
Chris WhiteGreat experience with with Portman for the time! Excellent outcome so thank you Elliot and Patryk for looking after us so well, Thank you
Steven AndrewsJoshua Walsh and Daniel Cooper organised our finance for our business. Professional, timely and smooth, from start to finish.
Maria GrimmerDavid was incredible in what was a very complex and difficult situation . We would recommend him highly
Phil LeighNice people to work with, our account manager went above and beyond to come up with a deal that made sense to us financially but also would allow us to fund the next growth phase of our business