What is an
Unsecured Business Loan?
With the current economic climate, many lenders insist on collateral to secure a loan. At Merchant Money, we are able to offer you unsecured solutions that do not require any collateral to be put up.
We understand that not every day is business as usual and with an unsecured business loan, there is no need to worry about losing your assets in the event of non-payment. Our only requirement is that a partner or person involved cover the loan if the business is unable to repay.
- Get a business loan from up to £150,000
- Designed with your business in mind
- Non-Collateral solution
- 24-hour approval
- 90% approval rate
What is the difference between an
Unsecured and Secured Business Loan?
The answer to that question is best remembered by the name for each. A secured business loan is one where collateral is offered up as security, in case you default on the loan repayment. This acts as the safety net for your loan. Some examples of collateral include property, cars, investments or any other assets that can be liquidated.
Secured loans generally have a lower interest rate as there is a plan in place should repayments not be met. Secured lending is often known as asset-backed lending because it is effectively, backed by assets. An unsecured business loan is that where no collateral has been offered up for the loan. This is also great for businesses that are just out the gates and may not have any assets to offer.
What are the benefits of
an Unsecured Business Loan?
Smaller Loan amounts: This is ideal for any business that requires a smaller loan amount.
No risk of losing assets: Because you need not put up any collateral, there is no risk of losing any property or assets if the event of non-payment.
Quick turnaround time: The approval process is swift, without any lengthy or unnecessary processes and laborious legalities.
Flexible repayment: These loans can be repaid over a period of up to five years. The longer the period the lower the interest rate you will be charged on the loan.
Great for existing traders: This loan option works especially well for those businesses already trading as the loan is assessed against your business trading position.
Merchant Money is a member of the Federation of Small Business (FSB) and a Patron of the National Association of Commercial Finance Brokers (NACFB). We are uncompromising in our principles and practice ethical and responsible lending at all times.
When it comes to securing business finance, it’s vital to make an informed decision. We’ve answered some of the most commonly asked questions to help you in that task.
When do I qualify for a business loan?
We welcome all UK based sole traders, limited companies or partnerships. We require an annual turnover of £100,000 and a minimum of one year’s financial accounts.
How much can I borrow?
Our Unsecured Business Loans vary from £5,000 to £150,000 and we offer Secured Business Loans up to £500,000. We also offer regulated business loans to sole traders up to £25,000.