Unsecured business loan

Unsecured Business Loans in the UK


Unsecure Business LoanUnsecured business loans are now freely available to UK based businesses at competitive rates to what the high street banks charge. The main difference between a secured loan and an unsecured is that secured loans require you to provide collateral in the form of physical assets. This type of finance is quick and easily accessed without the need to offer personal security, assets or your homes.

What is an Unsecured Business Loan?

If your business does not hold many assets but needs to find quick working capital, this type of finance will be of welcome relief.

PDQ Funding have developed a better approach to finance and funding for small businesses, as a market leader for unsecured business loans in the UK. Business cash flow funding is available to your company 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.

The benefits of unsecured business borrowing

Your business many need a quick injection of cash, you may not with to place your family home down as security so our fast & flexible business funding solution maybe what you have been looking for.

    • Borrow £5,000 up to £200,000
    • Does not require any asset security
    • Repayment terms are flexible from 6 month to 5 years
    • Minimal paperwork required
    • Funds can be released quickly after approval
    • Short to medium term lending solution

What is an unsecured business loan?How does it work?

Choosing to apply for a business loan with PDQ Funding presents you with the opportunity to gain upfront capital without providing extensive security as backup information. The money you loan will usually be repaid on a monthly or quarterly instalment basis over a fixed period of time.

However, there are also a wide selection of flexible funding options for you to consider if you need more time to make repayments. For further information on the possible high levels of flexibility, contact us today.

Basically, unsecured loans work in a very similar way other kinds of business funding options.

Working capital is advanced to the company that has applied for the loan, and then that said company repays the funds over a fixed amount of time. The payments are made monthly in most cases. The interest rate is normally fixed and in some cases an extra fee can be charged for arranging the loan.

This type of funding product can be gained from banks but usually only up to £25,000, specialist business lenders such as PDQ Funding offer amounts up to £200,000. Many people choose to apply to specialist business funding companies these days because banks have become notoriously difficult for customers to deal with in this area.

What are the advantages?

There are many advantages to opting for unsecured borrowing, it’s an easier, more risk-free way of clients getting the funding they need for their business to succeed.

In theory, this type of funding is a less risky borrowing option because there’s no danger of losing any assets if you can no longer repay the loan. They can also offer more flexibility than secured loans, with lenders tending to offer repayment terms of anything from one month to three years. A prefect credit history is not always required.

As it’s not secured against property or other collateral, many lenders will be happy to top up a loan once a company has made a certain number of successful repayments, and will also offer repayment holidays as an additional benefit.

The advantages we offer our clients:

  • No assets needed – Assets are not required as extra security when applying for a business loan.  This meaning they are a highly accessible source of funding for new business owners in particular.
  • Use for multiple purposes – You can use the funds gained from your loan however you like. It doesn’t matter if you want to invest in new stock, hire extra members of staff, or even move the location of your business. You have no spending limitations in this sense with an unsecured loan.
  • Get approval and funds faster – When compared to other kinds of funding – fast business loans that a free from the requirement of personal security. It’s the quickest way of the funds being in your bank account, allowing you to make that much-needed next business step.
  • More flexibility in repayments – Our team of alternative business funders can offer you a flexible finance solution that works well for you, tailored for the purpose of your individual needs. Loan repayments can be discussed and paid over a short or medium term, allowing you a higher level of freedom when making payments.

Does my business qualify?Does my business qualify for a unsecured business loan?

With PDQ Funding, it’s a quick and easy process to find out whether or not your business qualifies for our unsecured business funding. Choosing this method of unsecured loaning will allow you to avoid completing a lengthy application process and save you from waiting for an extended period of time in order to get the results of said application.

This is why many people now choose to contact alternative lenders rather than going to banks or other high street companies when attempting to gain any type of loan or finance for their business. The process as a whole is much simpler for the loanee themselves and the entire service can be fulfilled with much more ease.

If you’re looking for funding for your business, you’re in the right place. Most cases will be accepted because there are so few requirements, but here at PDQ Funding with do have a few guidelines for our customers to stick to. Find them listed below.

Our requirements for your business:

  • Own a UK bank account
  • Your business needs to have been operating for at least 4 months
  • Have an annual turnover of at least £10,000
  • Be a limited company, limited liability partnership, or sole traders registered in the UK

Are personal guarantees or security required?

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.

Unsecured Business Loans No Personal Guarantee UK

Are personal guarantees needed to get an unsecured business loan in the UK? The answer is YES and NO! High street lenders meaning the banks like Barclays usually will not ask for security with an amount up to £25,000. This is due to them having a clear visibility of your business account. Alternative lenders usually and always will as for a PG (Personal Guarantee) in the UK.

Again Fintech lenders will not take a debenture over the business, where as a high street lender may. Some asset based lenders such as Nationwide Corporate Finance will take a second charge over your home & a debenture on your business to protect their position. As always it comes down to how confident you are of your business and its ability to repay the amount. Lenders always take the view if you are not prepared to offer security that they believe you may not have the confidence of making the venture a success.

FAQ’s

What is an Unsecured Business Loan?

Unsecured Business Loans are a type of borrowing that banks or alternative lenders offer to businesses in the UK without the need for the directors to offer security or a debenture on their businesses.

Is there a requirement for a PG for a Unsecured Business Loans

Yes most lenders with as for a PG ( Personal Guarantee ). This means if the business fails to make the repayments to the loan company, you will personal have to pay the outstanding amount off.

Can I get an Unsecured Loan for a Start Up?

No most lenders will require the business to have a trading history. Most start up loans require the founder to give security.

Can I get a Unsecured Business Loan with Bad Credit

Most lenders do not sit comfortable with bad credit regardless if it is personal or if the company has suffered from adverse. A funder will more than likely as for security until the default or CCJ has been removed.

How do I apply for a business loan?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.

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.

Unsecured loans is different to a start up loan as lenders like to see the ability to reply the loan.

The benefits of unsecured business borrowing

Your business many need a quick injection of cash, you may not with to place your family home down as security so our fast & flexible unsecured business loan solution maybe what you have been looking for.

  • Borrow £5,000 up to £200,000
  • Does not require any asset security
  • Repayment terms are flexible from 6 month to 5 years
  • Minimal paperwork required
  • Funds can be released quickly after approval
  • Short to medium term lending solution

Apply for unsecured funding 

Limited companies register in England, Scotland, Wales and Northern Ireland, sole traders and partnerships are welcome to apply for unsecured borrowing. 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
  • Have a UK bank account
  • Limited company, limited liability partnership (LLP) or sole traders registered in the UK

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.

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