Unsecured business loans – Borrow without using assets as security
Unsecured business loans give UK companies fast funding without using assets as collateral. We search 80+ lenders for options from £1,000–£500,000+. Check eligibility in minutes; some initial checks are soft, with hard checks if you proceed.
Last updated: October 2025, edited by Joe Morley, reviewed by Vivek Seda
Trusted by over 17,000 customers
What is an unsecured business loan and how it works
What is an unsecured business loan?
An unsecured loan is credit advanced to your company without fixed asset security (e.g., no property or equipment charge). Lenders assess affordability, trading history and risk; many ask for a director personal guarantee (PG) and will consider cash flow, revenue trends and bank statements.
With Funding Options by Tide, one application matches you to offers from 80+ UK lenders, so you can compare and choose.
Key takeaways
Quick working-capital finance with no asset security required (a personal guarantee is common).
Amounts: typically £10k–£500k (some smaller/larger case-by-case)
Speed: decisions in hours; funding in days (docs dependent)
Term: c. 3–60+ months
Use cases: stock, payroll, marketing, equipment, projects, VAT/tax bills
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
-
Monthly interest
-
Total interest
-
Length of loan
-
Total cost of loan
-
Financial product information
Representative example*
• 9.7% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,291.56. The total amount payable is £54,997.44
*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 8.2% 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+ UK lenders in minutes
We scan the market so you don’t have to, finding the right option for your business.
Trusted by 17,000+ UK businesses
From startups to established SMEs, we’ve already helped secure over £1bn in funding.
FCA-regulated and Tide-backed
We operate as a credit broker, not a lender, giving impartial access to multiple finance products.
Excellent customer experience
Our Trustpilot rating is 4.8 out of 5, based on 1,300+ independent reviews.
Personalised support
Our team can guide you through the process and help you choose the finance that fits your needs.
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.