Unsecured Business Loans

Whether you're struggling to keep up with monthly payments or have pivoted your business goals, you might be considering an unsecured loan.

Keep reading to learn more about unsecured business lending, whether it's right for you and how to qualify. Alternatively, you can get in touch with Rangewell to talk to our business loan specialists about securing the funding your business needs to grow. 

What is an unsecured loan?

An unsecured loan is provided by a lender without the need for property or other tangible assets as security. Typically, this type of business funding comes as a cash lump sum, with loan amounts ranging from £2,000 to £250,000 depending on your situation and eligibility. 

This type of loan is repaid in monthly instalments and can be great for business owners looking for short-term finance as turnaround time on applications is often quick. Making this an ideal solution for businesses in need of quick cash. 

Unsecured finance differs from secured loans in that you don't need to put up any assets as security. So, if you don't own any property or equipment, or you simply don't want to use this as loan security, then you can still tap into the benefits of business finance with this solution. 

While unsecured loans are typically simple to arrange with funds released in a matter of days, it still pays to have an expert like Rangewell on your side to make sure you are getting the best possible deal.

Since the loan is not secured against tangible assets, the lender will ask for a personal guarantee from you and your partners and co-directors, which will mean that you would be required to make the repayments if your business could not. Therefore, information such as other business interests, trading history and credit rating are all relevant to this process. 

Make sure the application process is carried out accurately and efficiently by working with Rangewell. Speak to our expert team of advisors today and start your application. 

What are the benefits of an unsecured loan?

An unsecured loan is a common type of business finance favoured by companies that do not want to use their tangible assets, such as property or equipment, as collateral. Some of the most common benefits of unsecured loans include:

Quick turnaround: Depending on your circumstances and how much you want to lend, you can access the funds from your unsecured loan within just days of your application approval. 

Varying funds available: Unsecured finance covers a wide range of loans, with business owners able to lend the loan amounts that suit them, even if that's just a few thousand pounds on a short term basis. 

Easy monthly repayments: Repaying an unsecured loan is easy, usually taken as monthly payments via direct debit, so you will be able to account for this within your business takings. 

Flexible use: You can spend your unsecured loan in any number of ways. So, if you simply need to boost cash flow or want to invest in a new product for your store, then this quick and easy solution could be just the ticket. 

Access to alternative lenders: When applying for finance, it's important to explore the whole of market, including specialist lenders who may be able to offer better rates than your big banks. 

So, if you think unsecured finance might be the next step for you, don't take it on yourself - tap into Rangewell's unrivalled expertise in finding businesses like yours the best possible finance for their circumstances. Contact our team today and learn more about unsecured finance. 

How to qualify for an unsecured loan

The only way to know for sure whether you are eligible for an unsecured loan for your business is to have your individual circumstances assessed. Typically, to access this type of loan, you need to:

• Have a limited company or a limited liability partnership (LLP)
• Be based in the UK
• Meet a minimum turnover threshold
• Meet the necessary credit score 

Depending on the lender's requirements, there may be other criteria you need to meet. Find out more and start your application with Rangewell today. 

How to apply for an unsecured loan

Applications can be straightforward, and many lenders now prefer to keep paperwork to a minimum.

Unlike secured loans, there is no need for valuations and inspections, although lenders will need to look at your business to ensure that they will be repaid.

Traditional lenders may still wish to see paper documents, such as accounts, to help prove that your business can afford to make repayments, but online loan providers may take a different approach. Some are able to make lending decisions based purely on your publicly available online information. For larger sums, some lenders may ask you to upload documents directly to a secure area of their website.

Unsecured loans with Rangewell

With so many unsecured loan providers on the market, choosing the right lender isn't easy. From determining what you can afford in terms of loan repayments through to finding the best loan terms for your circumstances, it's worth having an expert on your side who can navigate this minefield and get the best results for you.

Of course, unsecured loans are just one type of finance - you might also be eligible for different types of commercial loans, and you may even find that another solution is a better fit for you. However, without the right advice and information at hand, you won't be well-equipped to make the best decision for your business.

Unsecured finance also requires credit checks and information on personal credit history - usually from all directors in the company. So, if you or another director has personal debt then this could affect your eligibility for unsecured finance.

There are so many unsecured loan providers, so choosing the right one for you isn't easy. From traditional lenders like high street banks and the new generation of challenger banks to specialist, niche and P2P providers - how can you know which is right for you? 

Lenders' rates and terms can vary substantially, and some providers may only be able to offer their most competitive rates for loans of particular sizes and lengths of time. In addition, some lenders tend to specialise in certain business sectors, where they have more experience with the risks and opportunities involved.

Finding the right lender is essential to minimise the cost of your borrowing. At Rangewell we work with you to understand your borrowing needs, and then use our knowledge of the entire UK market to find the lenders who can offer the most competitive deal.

We look at all types of lending and we’ll be able to see if an unsecured loan really is the solution for your needs – or whether some other kind of borrowing could cost you less.