Fund Your Cash Flow, Debt Consolidation, Business Expansion
Unsecured Business Loan
A Complete Definition
What is an Unsecured Business Loan?
An unsecured business loan is an ideal solution for funding your cash flow, debt consolidation, business expansion and much, much more.
When you require a fast solution and want to avoid dealing with the bureaucracy of a bank, an unsecured business loan may be just what you’re looking for.
Coates Finance has lent a helping hand to many companies in need of a cash injection.
We understand that running and keeping a business afloat is challenging. We also understand that unexpected and uncertain economic times can happen.
This is where an unsecured commercial loan can be a safety net or the solution you need for growth.
Use a fresh injection of working capital to purchase new equipment needed for the day to day running of your business without using your assets or property as security.
helping you get the right Finance for your Business
How do Unsecured Business Loans Work?
Unsecured Commercial Loans Explained
The process of obtaining the loan is simple and involves showing a healthy financial statement and the track record to prove that you have the confidence to fully repay your loan.
To meet the criteria, the borrower must have the following:
- A good credit rating: It is more difficult to get approved for a loan if you have bad credit.
- Evidence of good trading history via the provision of clear audited accounts, preferably for the current trading period, along with a previous couple of years.
- A clear business cash flow forecast for the next few months will greatly help your chances of approval acceptance.
- At least the last 3 months of bank statements.
What you need to know about Unsecured Business Loans
Interest rates on unsecured business loans are often higher than for secured loans, due to the extra risk involved in granting the loan. However, this can also depend on a credit check to establish your credit rating.
That being said, this financial vehicle can be inexpensive compared to other options.
The repayment term will often be limited to a shorter duration than for a secured loan, because of the larger repayment amortization required and due to the higher risk.
When seeking an unsecured business loan it is important that you have the income available to make payments over the life of the loan.
We can help you to calculate the best rate and find you a reputable lender who can offer you the best rates.
Which type of loan is right for your business
Types of Unsecured Business Loans
Benefits of Unsecured Commercial Loans
There are several types of unsecured loans. Coates Finance can advise on matching the loan type to your business.
Coates Finance will always provide you with full transparency and be unbiased to the lending solutions we provide. We’ll work to achieve the ideal outcome for your business, without having to rely on assets that you either don’t possess or which you don’t wish to use as security.
Other types of loans which don’t require collateral include;
- Business credit cards
- Business term loans
- A business loan with a personal guarantee
- Merchant cash advance
- Receivables financing
- A business line of credit
“Hit” the Apply For Finance button or complete the form below.
Contact us today if you need assistance and would like to discuss the various types of short to long-term unsecured business loans.
Know the pros and cons as well as the difference
Secured Vs Unsecured Business Loan: The Risks and the Benefits
Unsecured commercial loans have always been of lower risk to the borrower and of higher risk for the lender, because of the possibility that the borrower could default with no means of repaying the debt.
Many lenders will look at the amount you wish to borrow relative to the turnover of the business, i.e. the overall ‘gearing’ of a business is taken into account.
For the majority of the lenders we deal with, the maximum unsecured loan is around £5000,000.
However, if a company has a high enough turnover and shows a consistently good profit, much higher sums can be obtained.
The benefits of an unsecured loan include:
- Quick turn around as no valuations or legal charges required.
- No Assets required
- Low initial payments
- Fixed monthly repayments
The downsides of an unsecured loan include:
- The business needs to show good trading accounts
- A good credit score is required
- Higher interest rates than secured loans
- Shorter terms are available than secured loans, usually from 1 to 5 years.
best unsecured business loans
apply for unsecured business loan
Here is how you can start the process and apply to get your Unsecured Loan Agreement in place.
Before we can successfully process your application, there are a few requirements that your business must have in place.
Here is a list of the basic criteria for unsecured business loan:
- Applicant must be a Limited Company or Limited Liability Partnership
- The company must be based in the UK
- Company MUST NOT have any CCJs
If your business passes the above criteria, you’re on your way to pre-approval. Now, all that you have to do is complete the application form so that we can verify some of your credentials to see if you qualify to work with us.
Complete the short form below to go through our pre-approval process where you can speak to one of our knowledgeable finance professionals for a FREE quote.
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Why Choose Coates Finance?
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Here Is What We Need To Get Started With Your Application For A Unsecured Loan
Fast Finance in 3 Easy Steps
Our friendly team of experts are waiting to assist you and your company with an application for a unsecured business loan.
We’ll help you finalise a solution that meets your needs, and take the hassle out of the decision-making process so you can spend more time on what matters to you most – growing your business.
We have streamlined the application process and made it super simple to apply for the funding you need.
Complete the short form below and let’s get started today.
Complete the form below and speak to one of our knowledgeable finance professionals, who will answer your questions and guide you through the final steps to a solution that works for you.
Call us on 01904 492851
You can also give us a call if you need immediate answers to your questions. Our friendly experts will happily answer any questions you may have before you begin your application.
Lines are open
9:00am – 5:30pm Monday to Friday
(excluding UK bank holidays)
3 steps to success
We'll Help You Every Step Of The Way
Follow the simple 3 step process to finance your business today.
Once you have completed the first step, we will get you on a call to answer any more detailed questions you may have and move quickly towards getting your financial requirements successfully approved
Complete the Form
Complete the simple form below and apply online for the amount you need to grow your business
Receive Fast Approval
We will process your application and aim to get you approved for your desired amount in 24-48 hours
Now you’ve been approved, you can acquire the assets for you require to grow.
Let's Get Started
All you need to do is complete the form and submit your application to get started today