Unsecured business loans – Borrow without using assets as security
An unsecured business loan allows you to borrow money without putting up property, equipment, or other assets as security. Instead, lenders look at your business’s financial health, trading history and credit profile.
At Funding Options by Tide, we work with 80+ lenders to help UK businesses compare unsecured loans. We’ve already supported 17,000+ SMEs, securing over £1bn in funding.
Trusted by over 17,000 customers
What is an unsecured business loan and how it works
What is an unsecured business loan?
An unsecured business loan is a form of borrowing where the lender doesn’t require physical assets - like property or equipment - as collateral. Instead, approval is based on your company’s turnover, creditworthiness, and trading history.
Repayments are made in regular instalments over an agreed term, and the loan can be used for a variety of business purposes.
Key features
No collateral required: no need to offer business assets as security
Fast approval: funds often released within 24–72 hours
Fixed or flexible terms: repay over 3 to 60 months, depending on the lender
Amounts from £1,000 to £500,000: based on turnover and credit profile
May require a personal guarantee: especially for limited companies or directors with low credit scores
Example
A limited company with 18 months of trading history and £200k annual turnover applies for a £25,000 unsecured business loan. Based on the business credit score and affordability, the lender approves the loan over 24 months with fixed monthly repayments and no asset security required.
When should you consider an unsecured loan?
Unsecured loans can be useful for:
SMEs without significant assets to offer as collateral
Businesses needing fast access to working capital
Covering payroll, VAT, or supplier invoices
Investing in growth projects like marketing campaigns
Startups and younger businesses (if trading history is limited, see business loans for new businesses)
Benefits and things to consider
Pros and cons of unsecured business loans
Benefits | Things to consider |
No collateral required | Interest rates may be higher than secured loans |
Quick approval and funding | May require a personal guarantee |
Flexible loan amounts and terms | Lower maximum amounts than secured business loans |
Preserves ownership and assets | Strong credit score often needed for best rates |
Widely available for SMEs | Shorter repayment terms than long-term loans |
Unsecured vs secured business loans
Unsecured loans – Fast, no collateral, higher rates, lower limits.
Secured loans – Backed by assets, slower approval, lower rates, higher borrowing potential.
Choosing depends on your asset position, cash flow and funding goals.
Common use cases
Hiring staff or freelancers
Bring in new talent or cover temporary contracts while scaling up operations.
Marketing and advertising
Invest in digital campaigns, brand awareness, or seasonal promotions.
Buying stock or equipment
Purchase inventory or smaller assets that don't require asset finance.
Bridging cash flow gaps
Keep operations moving smoothly during quiet periods or while waiting for client payments.
Paying tax bills
Cover VAT or corporation tax deadlines without disrupting daily cash flow.
Are unsecured loans right for your business?
Unsecured business loans can work well for:
UK-based limited companies or sole traders
Businesses trading for at least 12 months
Firms with regular income and healthy cash flow
Companies without significant physical assets
Directors comfortable providing a personal guarantee (if required)
It may not be suitable for startups, or businesses with poor credit and no repayment plan.
Unsecured vs secured business loans
Feature | Unsecured loan | Secured loan |
Security required | No | Yes (property or assets) |
Application speed | Faster | Slower |
Typical loan amount | £1,000 to £500,000 | £10,000 to £5M+ |
Credit requirement | Higher | Often more flexible |
Risk to business assets | None | Assets at risk if defaulted |
What affects your eligibility?
When assessing applications, lenders look at:
business turnover and trading history
credit score (business and/or director)
outstanding debt or existing liabilities
repayment affordability
use of funds (optional)
Most unsecured lenders will require at least 6–12 months of trading history. Some may request a personal guarantee, especially for loans over £25,000.
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Monthly payments
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Total interest
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Alternatives to unsecured business loans
Secured business loans
Secured business loans are for larger sums or better rates
Merchant cash advance
Merchant cash advance are for businesses with card sales
Invoice finance
Invoice finance which unlocks cash from unpaid invoices
Revolving credit facilities
Revolving credit facilities are flexible drawdown and repayment
Business credit cards
Business credit cards are for smaller, recurring expenses
How does Funding Options work?
Tell us how much you need
We’ll ask a few questions about your business and the reason for your loan.
Get quotes instantly
Our smart technology will compare quotes from up to 80+ lenders to help you find the ideal business loan.
Apply for a Business Loan 🎉
We'll be there to guide you through every step of the process.
Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
Compare 80+ lenders
Access a wide range of trusted lenders: from high street banks to alternative finance providers.
No fees or obligations
Our service is completely free to use. You’re in control of who you borrow from.
Fast, personalised results
Get real-time matches based on your business profile and funding needs.
Expert support when you need it
Our team is here to help — by phone, chat, or email.
How to apply with Funding Options by Tide
No fees for comparing and no obligation to proceed.
Tell us about your business and the funding you need.
Compare tailored offers from 80+ UK lenders.
Provide documents for underwriting.
Finalise your facility and receive funds quickly.
Want to know more about unsecured lending?
How much can I borrow unsecured?
Amounts typically range from £1,000 to £500,000 depending on turnover and creditworthiness.
Will I need a personal guarantee?
Often yes, even if assets aren’t pledged. See personal guarantee loans.
Are unsecured loans suitable for startups?
Some lenders offer them, but options are limited. See business loans for new businesses.
What credit score do I need?
A stronger score improves access and rates, but some lenders offer bad credit business loans.
How quickly can I get an unsecured loan?
Funds may be available in as little as 24–48 hours once approved.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Joe Morley
Business Finance Lead
Joe has been helping UK businesses secure the funding they need since 2015. Over the years, he’s supported hundreds of SMEs in accessing millions of pounds for everything from purchasing essential assets to unlocking working capital for day-to-day operations. As Head of Sales at Funding Options, Joe leads a large team of expert Business Finance Specialists dedicated to finding the right solution for every customer. His goal is simple - to make securing finance straightforward, stress free, and tailored to each business’s needs.