Can I get unsecured business finance?

Short answer

Yes — many UK businesses can access unsecured business finance, but availability depends on your company’s profile, trading history and the type of funding you need.

Unsecured options usually carry higher costs or stricter eligibility than secured loans, so comparing providers and understanding terms is essential.

What “unsecured business finance” means

Unsecured business finance means borrowing without using business property or assets as collateral.

It includes products such as unsecured business loans, merchant cash advances, credit cards aimed at companies, some invoice finance arrangements and certain microloans.

Because lenders take greater risk without security, interest rates, fees and lending limits typically reflect that increased risk.

Who can usually get unsecured finance?

Established SMEs with trading records, steady turnover and clear cashflow are the most likely candidates for unsecured lending.

Smaller or newer companies may still access short-term unsecured products, but often at higher cost or with stricter repayment terms.

Larger lenders and specialist funders look at credit history, director track record and recent performance when assessing applications.

Common types of unsecured finance and when they fit

Unsecured business loans: term loans with fixed or variable rates that do not require security can suit short to medium-term needs.

Business credit cards: useful for regular purchases and building credit; best for controllable, short-term spending.

Merchant cash advances: repayable from future card sales and suitable for retail or hospitality firms with strong card turnover.

Invoice finance (select products): some invoice finance solutions offer limited unsecured options for high-quality debtor books.

Unsecured overdrafts and lines of credit: flexible but usually expensive and can come with renewal reviews and variable limits.

Each product suits different purposes, so choose based on cost, repayment profile and how quickly you need funds.

Key eligibility criteria lenders commonly use

Trading history: many unsecured lenders prefer at least 12–24 months of trading, with some requiring longer.

Turnover and profitability: lenders assess turnover thresholds and whether the business generates sufficient cashflow to service repayments.

Credit record: both business and director credit scores matter; historic defaults or CCJs reduce eligibility or raise costs.

Sector and borrower profile: some industries (e.g., high-risk or seasonal businesses) face stricter underwriting.

Purpose of funds and documentation: lenders will ask for bank statements, management accounts and sometimes VAT returns or contracts to verify claims.

How personal guarantees and directors’ security affect “unsecured” offers

Even when a loan is described as unsecured against business assets, some lenders still ask directors for a personal guarantee.

A personal guarantee is a form of security on the director’s personal credit — it changes the risk for the director, not the business.

Ask lenders to state clearly whether a product is truly free of director guarantees to avoid unexpected personal liability.

How to improve your chances and next steps

Prepare clear financials: up-to-date management accounts, at least 3–6 months of business bank statements and a concise use-of-funds statement help underwriting.

Build business credit: register accounts, pay on time and keep personal and business finances separate to improve scoring over time.

Compare options: unsecured finance is diverse; weigh APR, fees, early repayment charges and potential guarantees before deciding.

Use a trusted introducer: platforms like Best Business Loans help match businesses to lenders and brokers suited to their needs without offering loans directly.

If you’d like to explore appropriate unsecured solutions, our Quick Quote process assesses eligibility and matches you with relevant providers.

When unsecured finance may not be the best choice

If your business can offer assets such as property, plant or equipment, secured finance may provide lower rates and larger amounts.

For long-term, high-value investment (e.g., property or large machinery), secured products usually deliver better cost-of-capital.

Consider refinancing or partial security options if unsecured pricing is prohibitive but you need a larger facility.

Practical checklist before you apply

• Confirm trading history and gather 3–12 months of bank statements.
• Prepare management accounts and a simple cashflow forecast showing repayment ability.
• Check business and director credit reports and correct any errors before applying.
• Decide acceptable cost range and whether a personal guarantee is acceptable to directors.
• Compare multiple offers — small differences in fees or early repayment terms can change the effective cost significantly.

How Best Business Loans helps

We do not lend money and we are not a regulated lender or broker.

We use AI matching and a network of UK lenders and brokers to introduce you to suitable unsecured and secured finance options.

Our service saves time by directing your enquiry to providers who are actively lending in your sector and for your purpose.

To learn more about general business fund types and compare routes, see our guide to business loans here: business loans.

Regulatory, transparency and advertising notes

We aim to be clear, fair and not misleading in line with FCA and ASA guidance.

Best Business Loans does not provide regulated financial advice, and introductions do not guarantee credit approval.

When advertising or contacting you, we will include clear information about costs, eligibility checks and whether a third party may request personal guarantees.

Summary — Key takeaways

• Unsecured business finance is available in the UK, but eligibility depends on trading history, turnover and creditworthiness.
• Unsecured products tend to cost more than secured alternatives, and some require director guarantees despite being “unsecured” against assets.
• Prepare clear accounts, compare offers and use an introducer to match your needs to suitable lenders quickly.
• Start with a Quick Quote to get an eligibility check and tailored introductions to lenders and brokers who may be able to help.

FAQs

What is the typical size of unsecured business loans? Sizes vary widely from a few thousand pounds up to several hundred thousand, depending on lender appetite and business strength.

Will I need a personal guarantee? Some lenders do require personal guarantees even for “unsecured” business facilities, so always check terms carefully before agreeing.

How long does an application take? Decision times range from a few hours with alternative finance providers to several weeks for larger or more complex applications.

Ready to check eligibility? Complete our Quick Quote to get a fast, no-obligation Decision in Principle and see which unsecured or alternative finance routes may be available to your business.