Unsecured business loans are now freely available to UK based businesses at competitive rates to what the high street banks charge. Alternative Business Funding shock the lending market up and the products have grown and developed from that day. The days of a business having to provide assets and security to gain access to business funding have gone. Alternative finance products in todays market are a flexible bolt on for any business that needs a modern day business funding solutions. PDQ Funding offer Unsecured Business Loans or Alternative Business Funding product called Merchant Cash Advance.
Merchant cash advances are entirely based on the future debit and credit card transactions of the business applying for the funding. This fast and flexible business finance alternative to the traditional bank loan is popular with businesses. This type of business financing is fantastic for short term lends. There is no arrangement fee, and regales of your credit history anyone can apply.
What Benefits Do Unsecured Business Loans Have?
Small businesses like unsecured business loans, because you’re safe in the knowledge that your home will never be at risk should anything go wrong. Unsecured Business Loans often come with things that are disadvantageous to small businesses such as APR, fees, hidden charges and fixed monthly payments. Business loan interests rates vary but most are paid monthly, should you fail to make a payment the charge roles over to the following month. Merchant Cash Advance is an alternative funding solutions. You will not be charged any penalties, and it is unsecured. This means your home will never be at risk, a major advantage that a secure loan does not have.
PDQ Funding have developed a better approach to finance and funding for small businesses in the UK. Alternative business Finance is available to you if you have been trading for over 6 months and take at least £5,000 in customer debit and credit card transactions per month. This will allow you a cash advance of between £5,000 to £200,000. There are no need for business plans or personal guarantees with our short term small business loans.
The cash advanced amount will depend on your average monthly credit and debit card takings. The repayment amount is fixed. This set amount comes off every transaction you take, so if you don’t take any payments, you will not have to make a repayment. Meaning you only pay us when your customers pay you. This is agreed with you upfront with no interest or APR, late fees or penalties. The advance is classed as a short term loan as its term time is 18 months maximum.
When you apply for a loan lenders may require you to sign a personal guarantee.
What is a personal guarantee?
A personal guarantee is a legally binding signed agreement that if your company defaults on the loan repayments, you will be personally liable for paying back the money to the lender.
Why do you need one?
As the loans offered are unsecured, you aren’t required to secure the loan against an asset e.g. your home. Unlike secured finance, there is nothing to secure the loan against. The lender still requires reassurance that they will have a way of getting their money back, in the event your business defaults payments.
How risky are personal guarantees?
If you are satisfied with your business’s financial situation, and confident that you’ll be able to pay back the loan repayments on time. There should be no need to worry about signing a guarantee.
Fast Unsecured Business Loans
One of the most significant factors when applying for for a fast unsecured business loans is your personal credit rating. It will determine the basis of what type of finance is available to you and at the what rate interest you will pay. One of the first tasks you should do before searching for available business loans, you should check your personal credit score as this will help you determine quickly which loans you could be eligible for.
How Does Alternative Business Funding Work?
Step 1 – Qualify for up to 100% of your average monthly credit and debit card transactions. For example: a business that on average receives £10,000 per month through its card payment terminal. Could qualify for a cash advance of £10,000.
Step 2 – We agree on the total repayment amount in writing
Step 3 – You repay via a fixed percentage that is automatically collected off your future debit/credit sales, usually about 15% with no fixed term or fixed monthly payments. For example: If a customer pays you £100, £85 would go to you and £15 would automatically go back to the Merchant Cash Advance direct lender.
What unsecured business loans are available?
Searching for business loans is a time concise exercise, lending which is usually classed as unsecured is often more difficult to obtain as they represent a higher risk. However, as a leading lenders we are committed to providing loans to suit almost every business requirement. This means that we can help you find unsecured business loans for bad credit, even if your business does not have a desirable financial background or credit rating,
Our loan amounts start from just £5,000 to a maximum of £200,000, with repayment terms from a few weeks to just under two years. The most popular forms of unsecured finance are often revolving forms of credit, which involve continuous flexible borrowing and a payment plan based on the amount borrowed, such as our award winning merchant advance.
Unsecured loans is different to a start up loan as lenders like to see the ability to reply the loan.
Benefits of a Merchant Cash Advance
Advantages of using a merchant cash advance for your business:
- No fixed repayment periods
- Ideal solution for companies with high seasonality and fluctuating cash flow
- Automated process with no manual payments from the customer
- You only pay as you trade; when the business is quiet, you pay less
- Top-ups available after 4 months
- Better working capital cash flow
- We can work with all card payment terminal acquirers
- No collections off cash payments
Apply For A Unsecured Business Loan
Limited companies register in England, Scotland, Wales and Northern Ireland, sole traders and partnerships are welcome to apply for the unsecured business loans. Since we started we have offered merchant cash advances for restaurants, hotels, public houses, hairdressers, beauty salons.
If you want to apply to grow your business and get a quote. Please make sure you are aware of the following qualifying criteria and trading history we use:
- Minimum of 6 months trading through PDQ machine
- Minimum turnover of £5,000 per month through card terminals
The Application Process
We will first ask you some basic details to verify your business with our “Get a Quick Quote“.
- The amount you wish to borrow
- Average monthly card sales
- Trading name of your business
- Number of years trading
We will also need the following information.
- Title, first name and surname
- Email and phone number
Once completed just click our terms and conditions. Your application will be processed and reviewed by one of our account managers.
Once the application has been reviewed by a direct lender, one of our dedicated account managers will be in touch to discuss the terms of your loan agreement. At this point you are welcome to ask the lender any questions or have concerns about the loan, these questions could including repayment plans, to make sure there are no nasty surprises along the way.
After you have carefully read through all the terms of the agreement, you will need to sign all of the relevant documentation and return it to the lender.
You will then be able to access the money from your account once the lender has received your completed agreement.