An unsecured business loan lets you borrow a lump sum — typically between £5,000 and £500,000 — without putting up property, equipment or other assets as security. For thousands of UK businesses it is the fastest, simplest route to growth capital, and decisions can land in hours rather than weeks.
How unsecured business loans work
You borrow a fixed amount and repay it over an agreed term (usually 1 to 6 years) in regular instalments of capital plus interest. Because there is no asset securing the debt, lenders price the loan on the strength of your business: trading history, turnover, cash flow and credit profile. Many lenders will still ask a director for a personal guarantee, which is a promise to repay if the company cannot — this is not the same as securing the loan against a specific asset.
How much can you borrow, and what does it cost?
- Amounts: commonly £5,000 to £500,000, often capped at roughly one month of turnover.
- Terms: 3 months to 6 years.
- Rates: representative APRs typically range from around 8% for strong applicants to 25%+ for higher-risk profiles.
- Speed: many lenders give a decision the same day and release funds within 24–48 hours.
Who qualifies?
Most lenders want to see a UK-registered business, a minimum trading period (often 6–12 months) and a minimum annual turnover. Newer businesses and those with weaker credit still have options — including bad credit business loans and startup loans — though rates will be higher.
Unsecured vs secured: the quick version
Secured loans let you borrow more, for longer, at lower rates — but you risk the asset. Unsecured loans are faster and asset-free but usually smaller and pricier. We break this down fully in secured vs unsecured business loans.
How to apply
A whole-of-market broker like The Loans Hub matches your profile against 40+ lenders from one short application, so you compare real offers without multiple hard credit checks. You will typically need recent bank statements, basic company details and an idea of how much you want and why.
Frequently asked questions
Do I need to provide security for an unsecured business loan?
No asset is pledged against the loan, but many lenders ask a company director for a personal guarantee.
How fast can I get the money?
Strong applications are often approved the same day with funds in 24–48 hours.
Will applying hurt my credit score?
Comparing through a broker uses a soft search to match you; a hard check only happens when you proceed with a chosen lender.
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Get your free quoteThis article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.
