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.    

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Frequently Asked Questions


Can you have multiple unsecured business loans?    

You can have multiple unsecured loans, but lenders will consider any existing financial commitments as part of their affordability checks.

I haven't started trading yet, am I eligible?    

Startups can struggle to secure unsecured loans unless they have personal assets, experience and strong personal credit to back the application. There may be alternative options which are more suitable for start ups, including personal start up loans or asset finance.

Do I have to be a home owner?    

No, but it does open up options.

Do I need a personal guarantee?    

In many cases, yes. However, some lenders offer unsecured loans with a Debenture or limited Personal Guarantee instead. You may also be eligible for Personal Guarantee Insurance – please discuss this with us during your consultation.

What interest rates can I expect?    

Interest rates depend on the lender, loan amount, and your business’s financial health. Since lenders calculate interest in different ways, make sure you're comparing rates on a like-for-like basis.

How quickly can I get an unsecured business loan?    

There are some lenders in the market who can provide a funding decision in as little as 24 hours. If speed is your biggest priority, then you would need to apply with a lender that has this capability. Some of the quicker funding options in the market often come at a higher cost. Timeframes depend on the lender and application requirements for each business.

Can I apply with bad credit?    

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.

How much can I apply for?    

Unsecured Business Loans typically start at £10,000 and go up to £2m, sometimes more for the right business. Every lender has their own criteria so eligible amounts will depend on business affordability and other factors such as trading time and Director strength. Our team works closely with businesses to determine loan amounts and repayments based on their individual circumstances.

I am a sole trader or partnership, can I apply?    

Yes, unsecured business loans are available to Sole Traders, Partnerships, LLPs and Ltd Companies. Sole Traders and Partnerships are more limited on options.

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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.

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