Unsecured Term Loans

Unsecured business loans provide businesses with the flexibility to secure funding quickly, without requiring directors to pledge personal assets like their homes. Lenders typically secure the loan against the company’s assets, supported by a limited personal guarantee.

This arrangement empowers businesses to confidently access funds, seize growth opportunities, and receive the financial support needed for expansion and success.

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What are the advantages of Unsecured Loans?

Limited personal liability

Unlike secured loans that require collateral, unsecured term loans do not require any personal collateral. Instead, the lender typically registers a debenture on the assets of the company and secures a limited PG from the directors as a backup.

Faster approval and drawdown

Unsecured term loans have a faster and streamlined application process as there is no collateral involved. Lenders prioritise creditworthiness, financial history, and income potential, resulting in expedited approval and drawdown of funds.

Flexibility in use of funds

Unsecured business term loans provide flexibility in how the funds can be utilised. Whether it’s for business expansion, purchasing inventory, upgrading equipment, hiring additional staff, or managing cash flow, businesses have the freedom to allocate the loan amount according to their specific needs.

Easier Application Process

The application process for unsecured business loans is usually straightforward. Lenders typically request essential financial documents like bank statements and annual accounts, eliminating the need for costly asset valuations. This eases the administrative burden and reduces paperwork during loan applications.