Access unsecured business loans with Fundrocket. No collateral required—quick, simple, and affordable funding options tailored to your business needs.
What is an Unsecured Business Loan
An unsecured business loan is a financing solution that allows businesses to borrow funds without using assets, such as property, equipment, or inventory, as collateral. These loans are ideal for businesses that lack significant assets or prefer not to put their existing assets at risk.
With an unsecured loan, approval is typically based on your business’s financial profile, such as turnover, trading history, and creditworthiness. Fundrocket offers unsecured loans to provide fast and straightforward access to working capital, enabling your business to grow, expand, or address short-term financial needs.
Unsecured business loans provide upfront capital without requiring collateral. Here’s how they work:
A small marketing agency needs £20,000 to launch a new ad campaign. They secure an unsecured business loan and repay the amount over 12 months in affordable installments, allowing them to grow their client base while managing cash flow effectively.
Unsecured business loans are quicker and simpler to arrange, making them ideal for businesses that need fast funding without tying up their assets.
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Fast Access to Funds
Receive funding within hours of approval.
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No need to use your business or personal assets as collateral.
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Fixed Repayments
Predictable monthly payments help you plan your finances
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Flexible Usage:
Use funds for working capital, marketing, hiring, or expansion.
To qualify for an unsecured business loan, your business typically needs to:
Be registered in the UK and operational for at least six months.
Have a minimum turnover of £5,000 per month
Show a trading history, financial records, and forecasts.
Demonstrate good payment history (e.g., no significant late payments or county court judgments).
Even if you have a limited trading history or less-than-perfect credit, you may still qualify, though terms such as loan amount or interest rate may vary.
The loan amount depends on your business’s turnover, trading history, and financial health. Generally:
Loan Range: £5,000 to £500,000.
Turnover Multiples:Some lenders offer loans based on multiples of your monthly turnover.
For larger loans, a strong cash flow, long trading history, and solid financials are required. If your business doesn’t meet these criteria, alternative funding options like secured loans or invoice finance may be more suitable.
Interest rates for unsecured loans are typically higher than secured loans due to the increased risk for lenders. Factors influencing your interest rate include:
Business credit score and turnover.
Loan term and repayment history.
Personal guarantee, if required.
Example Rates:
For businesses with strong credit: Rates start as low as 4.5% per annum.
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Fast and Simple
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No Collateral Required
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Predictable Repayments
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Low Upfront Costs
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Higher Interest Rates
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Smaller Loan Amounts
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Personal Guarantees
Some lenders may require a director’s guarantee, increasing personal risk.
Yes, businesses with bad credit can qualify for unsecured loans, although terms may be less favorable:
Defaulting on an unsecured loan can have serious consequences, including: