Access £5,000–£500,000 without pledging property or equipment as collateral. We compare lenders across our panel and arrange the right deal — one application, no credit impact at enquiry.
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£500,000 Maximum Unsecured |
24h Typical Decision |
50+ Lenders on Panel |
6%+ APR From |
Need a business loan without putting assets on the line? Unsecured business loans offer fast, straightforward access to finance. They’re ideal for working capital, business growth, or simply creating more breathing room.
At Greenwood Capital, we connect UK businesses with lenders who understand how small businesses operate. Whether you’re just starting out or looking to expand, we’ll help you find funding that fits.
An unsecured business loan lets you borrow money without putting forward assets like property or equipment as collateral. Instead, lenders assess your business on its own merits — turnover, profitability, trading history, and credit profile.
This makes it faster to arrange than secured lending, with less complexity involved. It’s a practical solution if you need flexibility, don’t have valuable assets, or simply want to keep them separate from your borrowing.
The key distinction: Most lenders will require a personal guarantee, which introduces a degree of personal liability — but no charge is registered against your property.
Typical uses include: working capital, stock purchase, refurbishment, marketing investment, bridging a cash flow gap, or funding growth ahead of a larger, longer-term facility.
Loan terms and rates vary depending on your business profile. Tell us your situation — we’ll find the right lender for it.
| Feature | Unsecured | Secured |
|---|---|---|
| Collateral required | No (personal guarantee likely) | Yes, property, plant, or debenture |
| Typical APR | 6% to 60%+ | 5% to 15% |
| Maximum amount | Up to £500,000 | Up to £5m+ |
| Speed to funds | 24 hours to 2 weeks | 1 to 6 weeks |
| Asset at risk | No (lender can enforce PG terms, if triggered) | Yes, lender can enforce against asset |
| Best for | Speed, flexibility, no assets to offer | Larger amounts, lower rate, long term |
The main difference between secured and unsecured business loans comes down to collateral. A secured business loan is backed by an asset like property, vehicles, or equipment, which the lender can claim if repayments are not made. An unsecured loan, on the other hand, does not require any collateral.
That means unsecured lending is typically quicker to arrange, with less paperwork and fewer requirements. A good option if you do not have valuable assets, or if you would prefer not to tie them to your borrowing.
The trade-off is that interest rates may be slightly higher, and lenders may look more closely at your business performance and credit history.
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1 Soft enquiry Complete our short form. No credit impact at this stage. |
2 Matching We identify the 2 to 3 lenders best suited to your profile from 50+. |
3 One application Single submission protects your credit file from multiple hard searches. |
4 Decision & funds Decision in 24 to 72 hours. Funds typically within 1 to 5 working days. |
Rates vary significantly depending on lender type, your business profile, and the loan amount. Always compare APR, not monthly rate or flat rate, and look at total amount repayable, not just the headline rate.
| Lender Type | Typical APR Range | Typical Term | Best For |
|---|---|---|---|
| High street bank Lowest rate |
6 to 12% | 1 to 7 years | Established businesses with strong relationship |
| Government-backed (BBB) | 3 to 9% | 1 to 6 years | Startups; businesses needing affordable access |
| Online alternative lender Fastest |
10 to 30% | 6 months to 5 years | Speed; less stringent on trading history |
| Short-term specialist | 25 to 60%+ | 3 to 18 months | Urgent, smaller amounts; adverse credit |
WORKED EXAMPLE — £50,000 OVER 3 YEARS
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OPTION A — LOWER RATE, HAS FEE
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OPTION B — HIGHER RATE, NO FEE
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The Bottom Line: While Option A includes an upfront fee, it saves the borrower £5,984 over the life of the loan. Always compare the total cost of capital, not just the headline rate.
| Advantages | Disadvantages |
|---|---|
| Faster to arrange. Without a valuation, legal charge registration, or asset inspection, decisions can come back in 24 to 72 hours. Secured lending against property typically takes one to six weeks. | Higher rates than secured equivalents. Without collateral reducing the lender's risk, rates are higher, typically 6 to 60 per cent APR versus 5 to 15 per cent for secured lending against property. |
| Less documentation. Three to six months of bank statements and basic business information is enough for most alternative lenders. You do not need full accounts, a business plan, or a formal valuation. | Lower maximum amounts. Most unsecured lenders cap facilities at £250,000 to £500,000. Secured lending against commercial property can reach £5 million or more. |
| Accessible earlier in the business lifecycle. Some lenders accept businesses from six months of trading. Banks typically require two to three years of accounts. If your business is growing but not yet well established, unsecured lending is often the only mainstream route available. | Shorter terms. Repayment periods are typically one to five years. For funding you expect to repay over ten or more years, a secured product is more appropriate. |
| No restrictions on use. Funds can be used for working capital, stock, hiring, marketing, or any other business purpose. Lenders do not impose conditions on how the money is spent. | Harder to obtain with a poor credit history. Unsecured lenders rely heavily on credit profile when making decisions. A county court judgement, missed payments, or a low credit score can significantly reduce your options or result in a higher rate. |
Unsecured business loans can be a good fit if you need access to finance without putting up assets. They’re often used for working capital, covering short-term costs, or funding growth when time matters.
They’re especially useful if:
They might not be the best option if you’re after the lowest possible interest rate or need a large loan over a long term. In those cases, a secured loan may offer more favourable terms.
Eligibility criteria vary by lender, but most alternative lenders assess the following:
ELIGIBILITY CRITERIA
| Trading history | A minimum of six to twelve months of active trading is required by most lenders. Businesses with two or more years of clean trading access the widest range of lenders and the most competitive rates. |
| Annual turnover | Most alternative lenders require at least £50,000 in annual turnover. Some accept lower for shorter-term facilities. High street banks typically require higher turnover relative to the amount borrowed. |
| Credit profile | Both the company credit file and the personal credit file of each director holding 25 per cent or more of shares are assessed. Clean credit (no active CCJs, no defaults in the last three years, no missed payments) accesses the broadest panel. Adverse credit limits you to specialist lenders but does not automatically mean a decline. |
| UK registration | The business must be registered in the UK. Limited companies, LLPs, and sole traders are all eligible with most lenders. |
| Business bank account | Three to six months of business bank statements are required. Accounts showing consistent trading, no returned payments, and stable end-of-month balances present the strongest profile. |
Not sure if you qualify? Greenwood Capital can assess your profile before any formal application, with no impact on your credit file.
Not all personal guarantees are the same.
Unlimited: you are on the hook for the full outstanding balance if the business cannot repay, including any interest and recovery costs.
Limited: your liability is capped at a fixed amount, agreed upfront.
Always check which type you are signing before putting pen to paper, and ask for written confirmation that the guarantee will be released once the loan is settled.
After struggling to get finance, I came across Greenwood Capital and gave it a shot. George got in touch and within days, the funds were in my account - enough for the van, some cashflow, and even marketing. It’s been life-changing. Huge thanks to George and the team.We’re here to help - get in touch
Applying for an unsecured loan is simple. You can check your eligibility online in minutes, with no impact on your credit score.
We’ll ask a few quick questions about your business, then match you with lenders who are the right fit. If you decide to go ahead, we’ll guide you through the next steps and help you move forward with your application.
We’ve answered some of the most common questions below, from how quickly we can fund to what kind of businesses we support.
No, checking your eligibility for an unsecured loan won’t hurt your credit score if a soft search is used. At Greenwood Capital, you can check your options without any impact. A full application may involve a hard credit check, depending on the lender.
Greenwood Capital can arrange unsecured business loans up to £500,000 for most businesses. Higher amounts may be possible for strong credit profiles with additional security or a personal guarantee in place. Loan limits depend on your credit score, trading history, turnover, and overall risk profile.
Most alternative lenders require three to six months of business bank statements, proof of ID for each director, and confirmation of the business's registered address. For larger amounts - typically above £100,000 - lenders may also request filed accounts or management accounts covering the last 12 months. Having these ready before you apply is the fastest way to avoid delays. At Greenwood Capital, we tell you exactly what each lender needs before you submit anything.
Yes, in many cases. Specialist alternative lenders assess businesses with CCJs, defaults, or adverse marks on the director's personal credit file. The trade-off is a higher rate and a smaller pool of available lenders. An active CCJ limits your options more than a satisfied one. Greenwood Capital can identify which lenders have genuine appetite for your credit profile, rather than applying broadly and accumulating hard credit searches against your file.
There are no lender-imposed restrictions on use. Common purposes include covering a VAT or tax bill, buying stock, funding a marketing campaign, bridging a gap between completing a contract and receiving payment, and hiring staff. Equipment purchases are possible, but hire purchase or asset finance is often more cost-effective for a specific asset — because the asset itself provides security, rates are typically lower than unsecured.
Online alternative lenders can approve and fund within 24 to 48 hours of a completed application. The most common cause of delays is incomplete documentation: missing bank statements, an unsigned personal guarantee form, or a discrepancy between declared turnover and bank statement evidence. Having three to six months of business bank statements ready to share at the point of enquiry is the single most effective way to speed up approval.
Yes. Most alternative lenders accept sole trader applications, though maximum amounts and rates may differ from limited company applications. Because a sole trader has no legal separation between personal and business finances, the personal credit assessment carries more weight. Sole traders cannot sign a personal guarantee as such - personal liability is already inherent to the business structure - which simplifies one aspect of the process while making the personal credit file central to the lending decision.
For a limited company, the lender's first step is usually to pursue the personal guarantee signed by the director. This means the director is personally liable for the outstanding balance, which can include accrued interest and enforcement costs. If the director cannot pay, the lender may pursue a County Court Judgment, which affects the director's personal credit file and can lead to further enforcement action. Taking advice before a default — not after — gives you the most options.
Don’t wait to fund your growth. Our specialists are ready to help you find the right unsecured loan for your business. Apply using our form at the top of the page or get in touch today.
Benet Thomas
Marketing Manager, Greenwood Capital
With over 15 years in marketing and 7 in finance, Benet brings a unique perspective to business lending — making complex financial products clear and accessible for UK businesses.