- Business loans from up to £150,000
- Tailored to your business’ needs
- Non-collateral funding solutions
- 24-hour approval, 90% approval rate
Definition of an unsecured business loan
Raising money for your business can be a real challenge. Getting a business loan can be a good option for SMEs, but there are several other loan types available. What does an unsecured business loan mean and what is the difference between an unsecured a secured business loan?
An unsecured business loan doesn’t require a property to secure the loan amount, which means you don’t have to give up your property, land or other assets if you can’t make the repayments. Instead, we ask for a personal guarantee. The agreement is that the person involved will cover the cost of the loan if the business is unable to repay.
Unsecured business loans stand specifically designed for businesses that don’t have valuable assets as security. This type of loan is renowned for companies that operate on low resources or in small teams where large properties aren’t required. If you have a good credit history, then obtaining an unsecured loan is relatively straightforward.
Difference between unsecured and secured business loans
One of the simplest ways to see the difference between business finance products is to see whether or not the lending is secured. You will often hear people talking about ‘security’ for business loans. A secured business loan is backed up by security, usually valuable assets and items that your business owns. Secured lending is often known as asset-backed lending— because it’s business lending backed by assets. For an unsecured business loan, there is no requirement to provide property or other assets as security for a loan.
When is it right for my business?
Merchant Money understands how useful this type of loan can be for your business when you don’t have the necessary assets to secure a loan. Especially if you were rejected and turned away from UK banks, which is likely considering the current lending climate towards SMEs.
The advantages of unsecured business loans include:
- No requirement to provide property or other assets as security for a loan
- Only pay interest on what you owe
- Low barrier for entry comparing to traditional banks
Our loans are delivered quickly and are not secured by any collateral. Since we launched in 2013, we’ve helped countless small businesses grow, and we intend doing so for many more. Our loans are short-term; our vision isn’t. We’re here to talk to you about your business situation to understand whether an unsecured business loan is suitable for you. Unlike major banks or traditional lenders, we don’t require detailed business plans. Instead, we take the time get to know you better. Just fill out the application, and we’ll call to discuss the next steps.
What our clients are saying
It can be a real challenge for pubs, restaurants, shops or stores to seek finance for essential refurbishment, renovation or other improvements. Banks are slow, and funding can be costly, which can cause cash flow constraints. However, business owners who keep investing carefully will ultimately reap the rewards. For many, it may make the difference between success and failure. Small business funding can help to ease the pressure when it comes to costly improvements. Merchant Money can assist by providing fast, flexible finance solutions in the UK. For those businesses that run an online shop, we offer e-commerce funding. An ideal solution if you want to grow your eBay or Amazon business.
Martin Horner, Director of The Borough (hotel, pub & restaurant)
“Fortunately, Merchant Money understands my business and have assisted me in improving my facilities several times. The process is fast and simple, and the MM team is great to deal with. I will definitely partner with it again.’’
Dominic Boyett, Director EU Coffee Roasters
“Our recent experience with Merchant Money was faultless from start to finish, and I have no hesitations in recommending them for their professionalism and efficiency when handling our recent financing needs for the business. Their plain speaking and simple approach to our needs gave us the confidence that we were working with a finance house that genuinely wanted to go that extra mile in helping us find the best solution in the most cost-effective way possible. They can rest assured that we would never approach any other finance provider without giving Merchant Money the opportunity first”.
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.