Unsecured Business Loan

The majority of loans offered by lenders are secured as they are safer. However, if your financial history and creditworthiness is good enough, an unsecured loan is often an option.

Typically these will have higher interest rates and lower maximum loan amounts but also have lower legal fees involved.

Amounts £20K to £250K and may need a Personal Guarantee.

Secured Business Loan

With these loans, lenders typically have security over assets like machinery, property, equipment, stock, vehicles, accounts receivables, IP and funriture.

Usually the amount is linked to the Loan-to-value (LTV) rate. E.g. if a property is worth £1m and the LTV rate is 65% then the lender will lend up to £650,000.

Interest rates tend to be lower than unsecured loans.

Credit rating and history is less relevant with unsecured lending so if you have a bad credit rating then this could be a solution