Last updated: 06 Jul 2026
Access our marketplace of 130 business lenders
Unsecured business loans, compare 130+ lenders, no collateral required
Access up to £500,000 for your business, without putting property or equipment on the line:
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Why work with Capitalise?
200,000+ UK businesses trust us
Business credit data powered by Experian
£2bn in funding approved
FCA regulated since 2016
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What is an unsecured business loan?
An unsecured business loan is a form of business finance that is structured so that you can borrow money without pledging assets as collateral. Lenders assess their decision based on your business’s credit score and financial health, not the value of the assets you own. Because lenders take on more risk without security, unsecured loans typically carry higher interest rates than secured loans, but the application is faster and simpler.
What can you use an unsecured business loan for?
Maintain healthy cash flow
Access working capital to cover everyday expenses and smooth over seasonal or unexpected gaps.
Secure essential stock
Purchase materials or inventory in advance so you can meet customer demand without disruption.
Hire staff
Hire new staff or invest in training to build capacity and improve long term performance.
Expand with confidence
Fund new premises, equipment or facilities to support growth and take on larger projects.
Invest in business growth
Use funds to invest in marketing, technology or innovation that helps you reach more customers and scale effectively.
How much can you borrow with an unsecured business loan?
Through Capitalise, you can apply for unsecured business loans from £1,000 up to £500,000. The amount a lender will offer depends on your business’s annual turnover, credit history, and how long you’ve been trading.
Business profile | Typical loan range available |
|---|---|
Start up (3+ months trading) | £1,000 – £25,000 |
Established (2+ years trading, £100K+ turnover) | £10,000 – £150,000 |
Strong trading history (5+ years, £250K+ turnover) | £25,000 – £500,000 |
How do unsecured business loans work?
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Apply in minutes
Complete a quick online form with details about your business and funding needs. This helps us understand which lenders may be the best fit. Your Capitalise Funding Specialist will then help you prepare and submit the required documents, so lenders can assess your business and provide funding offers.
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Compare offers side by side
Review and compare any available offers. Your funding specialist will explain the rates, fees and repayment terms, so you can make an informed decision. Once you choose a lender and are approved, funds can be transferred in as little as 24 hours.
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Receive your funds
Money will hit your business account in as little as 48 hours. You repay the loan over a fixed term, typically from 3 months to 5 years, through fixed monthly direct debit payments. Some lenders allow early repayment, but it is important to check the terms for any fees or charges.
What are the interest rates on unsecured business loans?
Unsecured business loan rates in the UK vary by lender, loan size, term and risk profile, but typical pricing tends to fall into three broad ranges:
When comparing offers, always look at the full cost of borrowing, including fees and repayment terms, rather than the headline rate alone.
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Who is eligible for an unsecured business loan?
Most unsecured lenders in the UK are open to funding a wide variety of businesses and sectors. To be eligible, lenders typically expect your business to have:
If you meet these criteria, an unsecured loan can provide a fast and flexible way to support your plans.
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Can I get an unsecured business loan with bad credit?
Yes, bad credit unsecured business loans are available through specialist lender. Having a low business credit score doesn’t automatically disqualify you, but it will affect the rates and amounts available to you. Lenders who specialise in bad credit business lending look more broadly at your overall business performance and some may require a personal guarantee as additional security.
If you’re concerned about your credit score, use your Capitalise account to check your Experian business credit profile before you apply, so you can understand your position first.
What are the advantages and disadvantages of unsecured business loans?
Advantages | Disadvantages |
|---|---|
Businesses can get access to capital, without risking their assets. | Without a collateral, they can come with higher interest rates. |
The approval process for unsecured loans is much faster. | The maximum loan amount for unsecured loans are typically lower than those for secured loans. |
Unsecured loans typically involve less paperwork, simplifying the application process. | Lenders generally require higher business credit scores for unsecured loans, making it difficult for businesses with poor credit to qualify. |
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Do unsecured business loans require a personal guarantee?
Often, unsecured loans require a personal guarantee, but not always. While unsecured business loans don't require a specific business asset as security, many lenders still ask directors to sign a personal guarantee. This means you may be personally responsible for repaying the loan if the business cannot.
Personal guarantees are more common for larger loans, shorter trading histories or weaker credit profiles. Some smaller loans or stronger applications may not require one. Your Capitalise Funding Specialist will clearly flag which offers require a personal guarantee.
Unsecured vs secured business loans: what’s the difference?
Unsecured bUnsecured business loanusiness loan | Secured business loan | |
|---|---|---|
Collateral required? | No | Yes (property, equipment, etc.) |
Typical loan size | £1,000 – £500,000 | £25,000 – £5 million+ |
Interest rates | Higher (from ~7% APR) | Lower (from ~4% APR) |
Application speed | 24 - 48 hours | Days to weeks |
Personal guarantee | Often required | Sometimes required |
Best for | Fast access, smaller amounts, no assets to pledge | Larger amounts, lower rates, long-term finance |
What types of unsecured business loans can I apply for?
Term loan
An unsecured business term loan provides a lump sum of money upfront. This is repaid by the business over a fixed term with regular payments. The length of the terms can vary depending on the business and lender, it can range from a few months to 5 years.
Revolving credit facility
A revolving credit facility gives you access to a predetermined amount of funds that you can draw from as needed. Interest is only charged on the amount you borrow, and you can repay and reuse the funds within the credit limit.
Business credit card
Business credit cards are a type of unsecured business loan. Businesses typically use it to cover everyday expenses. They offer a revolving line of credit, allowing you to make purchases and repay the balance over time.
Merchant cash advance
Merchant cash advances are unsecured business loans that provide a lump sum of cash. Repayment is not fixed but a predefined percentage of your future sales. Lenders typically deduct a fixed percentage from your monthly credit card sales until the advance is repaid.
Invoice finance
Unlock cash tied up in unpaid invoices, typically 80- 90% of the invoice value, paid within 24 hours. Ideal if you have B2B customers with slow payment terms. The finance is secured against the invoices, so it's technically not fully unsecured, but no property is required.
Apply today for an unsecured business loan and compare offers from 130+ lenders