Unsecured Business Loans – Does Your Company Need a Loan?

We can offer companies unsecured business loans from £5,000 – £2 million. Decisions are provided within 48 hours. Best Rates.

We work with the full market of loan providers and as such can provide the best rates and can provide loans to most businesses.

Whether your business is purchasing new machinery, expanding the premises or simply needs working capital for growth we can help.

Loans are available to all types of businesses.

What can I use this loan for?

Typically unsecured loans can be used for any business purpose including working capital, growth, purchase of new equipment and marketing.

What information do we require?

We simply need your last year end filed accounts and your last 3 months bank statements (in a pdf format)

What interest rates do we offer?

We offer loans from a variety of providers and interest rates start at 6% AER.

No matter what your requirement or your circumstances Funding Solutions can help you source the funding that your business requires.

Get in touch today on 0845 251 4040, e-mail at finance@fundingsolutions.co.uk or complete the form at the top of this page.

Other Business Loan Considerations

When looking for a business loan, there are a lot of things you need to consider. There are a wide range of loans on the market and various products. Some loans are designed for speed, short term projects, growth projects, or small businesses, it’s hard to know where to start. There are also many different lenders on the market. These range from business loans from high-street banks, challenger banks, online lenders, and small local specialists.

With such an array of products and providers, the criteria, rates, and overall costs can vary significantly. Let’s take a look at everything you need to know about business loans:

Types of business loan

Business loans is a broad category, and can refer to lots of different products including:

Secured loans
Unsecured loans
Revolving credit facilities
Business cash advances

Within these product categories, you’ll find loans designed for specific situations:

Fast loans

These loans mean that you get the cash as fast as possible. Typically you can access cash within 24 hours.

The more prepared you are in terms of information the faster the process. Lots of lenders require detailed documents such as filed accounts, bank statements, VAT returns, forecasts, and your ability to get these documents together can make a big difference in how long the loan takes to process.

Short term business loans

Short terms loans typically have agreements between 3 months and 2 years. Term loans of more than 2 years would be considered medium- or long-term. If you’re considering a loan for a very short term it should be for a short term purpose such as bridging a VAT refund or a payment you are waiting for. It may be worth considering a revolving facility such as an overdraft or an overdraft alternative.

Small Business Loans

Some lenders only lend to small businesses and as such it is their speciality. Small business loans have historically been challenging to get from the banks, but with the range of alternative loan providers available these days, there are many more solutions available to you.

Business loans for bad credit

If you have a poor credit rating funding may still be available. It may be more challenging to borrow money with poor credit in the background but it’s still very much worth exploring. If you have security such as equity in property or other assets you may be surprised at what options are available to you.

Lenders

Each lender has it’s own capabilities, criteria, pricing and application process. The challenge is finding the lender that best meets your requirements but also has the appetite to lend to you.

At Funding Solutions we specialise in helping businesses source funding. We understand the market and can help you find the funding that you are looking for. Get in touch on 0845 251 4040.

What do the different lenders offer?

High-street banks

It’s common knowledge that the banks aren’t lending to businesses as much as they used to. This is probably a bigger issue for smaller business as banks are keeping them more at arms length. With more stringent credit criteria since the banking crisis and a move away from SME’s bank funding can be hard to get.

Banks will typically a well established business that can demonstrate continued profitability, a strong balance sheet, clean credit for the business and it’s owners or directors and some security. That said, if you meet the bank’s criteria it may be the cheapest form of funding.

Challenger banks

Arguably challenger banks are still banks. They have poached staff and processes from other banks. Their marketing may be more aggressive but typically their criteria is very similar to the high street banks.

Independent lenders

Independent lenders tend to specialise in a certain product such as business loans or asset finance. As such they are experts at what they do. This is when compared to banks who are more general in their offerings. This means they are typically better at what they do. After all, if you only offer business loans then you need to be good at it.

Typically these lenders are faster and more flexible with their criteria. At Funding Solutions, we use the whole market of lenders so can help most businesses with a solution.

Smaller specialist lenders

These smaller lenders are more bespoke in their offering. They will have a very focussed market and loan size offering. In terms of costs these can vary dramatically from lender to lender.

Many of the smaller lenders offer very fast online processes, meaning you can potentially get a loan within a day or two. Best of all, instead of rigid criteria they’re much more likely to take a case-by-case view of your application for a loan.

Eligibility and criteria for business loans

With so many offerings the criteria for a business loan can differ dramatically. To obtain a loan for you we will need to obtain your:
Filed accounts
Bank statements
Management accounts
VAT Returns

If you’d like to find out more about what kind of business loan you may be eligible for, get in touch to understand what your options are. There is no hard sell from us, just honest advice.

Security and personal guarantees

While unsecured loans do not require additional assets to secure the loan they do typically require an unsupported personal guarantee. However, if the business is strong there are options available where no personal guarantee is required.

If you are looking for a secured loan a wide variety of assets can be considered as security. These include property, vehicles, plant and machinery and even artwork and luxury goods.

Interest rates

As already mentioned the offerings from different loan providers can differ dramatically and that includes their pricing. Typically, lenders price according to perceived risk so lower the risk the lower the pricing.

Your business credit rating will play a large role in determining which lenders can lend to you and what rates you pay.

Beyond the interest rate it is important to consider set up fees, termination penalties and the structure and duration of the loan.

If you’d like to find out the rates that could be available to your business, start an application — it only takes a few minutes to see your options.