Short Term Unsecured Business Loan
A loan that doesn't need physical security
Considering a short term unsecured business loan? Fill out the form to get the ball rolling.
There are now over 40 lenders willing to lend unsecured small business loans in the UK. While the majority of these will require a PG from directors, some do not. The trouble is that they all have different criteria, different application processes and different sectors they prefer lending to, which can be a nightmare for SMEs.
It's our job to save you time and stress by guiding you through these processes. Our business finance experts take time to learn about your business and your financial requirements, then introduce you to the lenders who can meet you needs and who are most likely to accept your unsecured business loan application.
Why choose a Short Term Unsecured Business Loan?
- These are comparatively fast business loans. UK lenders can get cash to you quickly in as little as a few hours.
- The loans are unsecured but usually require a PG from directors or business owners.
- Unsecured business loans are available in amounts up to £500,000.
- Short term business loans are available but terms can last up to 5 years for more established businesses.
Frequently Asked Questions
What documents will I need to apply?
As a new business you will need a business plan and cash flow forecast. You may also be required to evidence demand and experience. If you have already started trading, you will also need business bank statements and in some cases, management accounts (profit & loss and balance sheet).
Are these Business Loans available all across the UK including Northern Ireland?
Businesses in Northern Ireland are eligible to apply for a business loan, although some lenders are restricted to lending in England and Wales only. Please talk to your business finance advisor who will know which lenders are able to lend to businesses in Northern Ireland.
Do I have to be a home owner?
No, but it does open up options.
Does it matter if I am a sole trader or partnership?
No, there are options for all types of business structures.
I have some adverse credit. Can I still get a loan?
Although it is more challenging to obtain finance with adverse credit, it is possible. It all depends on the exact nature of your adverse credit (when, who, how much and why?). Please call us to discuss.
I'm not sure what would be the best option, can I talk to someone about it?
Of course, just give us a call on 01494 410 125
I haven't started trading yet, am I eligible?
Usually lenders would require a minimum of 12 months trading, but it is possible to obtain a small business loan if your business hasn’t yet started trading. It may however limit your options and other factors will need to be considered (residential status, strength of credit etc).
What do I need to apply for a short term business loan?
Applying for a short term unsecured business loan is relatively straightforward. Here's what you need to know...
- Eligibility Criteria Your credit must be reasonably clean, if you want to access an unsecured business loan in the UK (secured options are available if credit is weak). There must be either affordability in the business for the loan or, failing that, an asset in the background (i.e. a home owner with equity).
- Documents Required The documents required to apply for a short term business loan will depends on the lender and size of loan in question. Some lenders only require VAT returns, others ask for bank statements and/or financial accounts (especially for larger unsecured business loans).
- Additional Comments This business finance product is all about speed and convenience. Fast business loans up to £100,000 can be paid out same day or within 24 hours. Others take a few days. In many cases these are not the cheapest loans but, if a business opportunity is strong, they can be worth the expense.
Since the financial crisis of 2008/9 high street banks have backed away from small business loans in the UK. To fill the funding gap, an unsecured business loan market has sprung up. There are now 40+ lenders out there competing to lend short term business loans to qualified SMEs.
With so much choice emerging, businesses are increasingly choosing the wrong type of finance,which costs them more and doesn't suit their requirements. This is where the Choice Loan experts can help. Call us to discuss your situation and we'll find "perfect match" small business loans in the UK for you.
Read our Short Term Unsecured Business Loan Guides
All you need to know about Short Term Unsecured Business Loan
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What are Short Term Unsecured Business Loans
Put simply, an unsecured business loan is one that does not have a charge on any specific asset. This means if the loan is not repaid then the lender does not have any item to repossess.
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How to get an Unsecured Business Loan
Since the financial crisis, business owners are less certain where to get unsecured business loans. This has allowed new lenders to enter the market and focus exclusively on SMEs.
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How do Unsecured Business Loans work
An unsecured business loan provides very flexible capital for your business to expand, grow, pay bills, buy stock and hire people.
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