The prospect of securing a loan on a valuable business property can be a bit daunting for some small business owners. Thankfully, there are lots of unsecured business loan options out there to choose from, all with different terms to suit different kinds of businesses.
These lenders and brokers offer fixed and flexible competitive unsecured loans from a couple of thousand pounds to millions. Keep scrolling to find the best unsecured loan for you.
Featured: Capital On Tap*
- Borrow up to £100k.
- Offers credit cards and a revolving credit line.
- Choice of Business Credit Card and Business Reward Credit Card.
- Rates as low as 9.9%.
- Get up to 56 days interest-free.
- No ATM charges.
- Up to 20 supplementary cards included.
- 2 minute application.
- Available to UK registered companies that have been trading for more than 3 months.
- Rated 4.8 out of 5 on Trustpilot.
Companies are ranked in no particular order.
| Bank/lender | Minimum loan amount | Maximum loan amount | Maximum term |
|---|---|---|---|
| Bank of Scotland | £1,000 | £25,000 | 25 years |
| Barclays | £1,000 | £100,000 | 10 years |
| HSBC | £1,000 | £25,000 | 10 years |
| Lloyds Bank | £1,000 | £250,000 | 25 years |
| Metro Bank | £2,000 | £25,000 | 5 years |
| NatWest | £1,000 | £50,000 | 10 years |
| TSB | £1,000 | £1 million | 25 years |
| Royal Bank of Scotland | £1,000 | £50,000 | 10 years |
| Ulster Bank | £1,000 | Not stated | 25 years |
| 365 Business Finance | £5,000 | £200,000 | n/a |
| ABC Finance | £500 | £500,000 | 5 years |
| ArchOver | £100,000 | Not stated | 3 years |
| Aspire Business Loans | £5,000 | £300,000 | 5 years |
| Capify | £5,000 | £250,000+ | n/a |
| Cubefunder | £5,000 | £100,000 | n/a |
| Fleximize | £5,000 | £500,000 | 4 years |
| Funding Circle | £50,001 | £500,000 | 5 years |
| iwoca | £1,000 | £200,000 | 12 months |
| PFC Finance | £5,000 | £1 million | 5 years |
| Rangewell | £1,000 | £250,000 | 5 years |
| rebuildingsociety.com | £25,000 | £250,000 | 5 years |
| Satellite Finance | £3,000 | £1 million | 10 years |
| Spotcap | £50,000 | £350,000 | 2 years |
| Starling Bank | £5,000 | £250,000 | 5 years |
| Start Up Loans | £1,000 | £25,000 | 5 years |
| White Oak | £25,000 | £2,000,000 | 4 years |
| Intelligent Loans | £10,000 | £150,000 | 5 years |
| Just Cashflow | £10,000 | £500,000 | 12 months |
| inFund | £5,000 | £150,000 | 12 months |
1. Bank of Scotland
- Offers loans that can be secured or unsecured.
- Available to sole traders, partners or directors.
- £1,000 – £25,000 available.
- Repay over 1-10 or 1-25 years.
- Fixed rates from 7.1% APR representative.
- Monthly repayments.
- No arrangement fees.
- No early repayment costs.
- Capital repayment holidays of up to 2 years.
- Open to new and existing customers.
Website: Bank of Scotland Business Loans
Read the full Bank of Scotland Business Finance review.
2. Barclays
- Loans of £1,000 to £100,000 are available unsecured.
- 8.9% APR representative on loans up to £25,000.
- A personalised quote is available on loans over £25,000.
- Quotes will not affect your credit score.
- Fixed interest rates.
- Cash is usually available within 48 hours.
- Choose your repayment term from 1-10 years.
- Open to new and existing customers.
- 6-month repayment holiday is available at the start of your loan (interest will still accrue).
- Also offers overdrafts.
Website: Barclays Business Loans
Read the full Barclays Business Finance review.
3. HSBC
- Small Business Loan from £1,000 to £25,000.
- Flexible Business Loan £25,000+.
- Unsecured options depending on circumstances.
- Interest rates 7.1% APR Representative.
- Repayment from 12 months to 10 years.
- Fixed repayments options for the life of the loan.
- No charges for additional repayments.
- Defer your first repayment for 3 or 6 months, or choose a January repayment holiday.
- No HSBC current account required.
- Apply online, over the phone or in branch.
Website: HSBC Business Loans
Read the full HSBC Business Finance review.
4. Lloyds Bank
- Borrow from £1,000 to £250,000.
- Unsecured options are available.
- Interest rates can be fixed or linked to the Bank of England base rate.
- Repay over 1-10 or 1-25 years.
- Rates from 7.1% APR Representative (fixed or variable).
- No arrangement fees.
- No early repayment costs.
- Capital repayment holidays are available for up to 2 years.
- Available to sole traders, partners and directors.
- Personalised quotes are available.
Website: Lloyds Bank Business Loans
Read the full Lloyds Bank Business Finance review.
5. Metro Bank
- Business loans from £2,000 to £25,000.
- Loans can be unsecured depending on your business’ circumstances.
- Repay over 1 to 5 years.
- 9.6% APR (fixed).
- Zero arrangement fees.
- Early repayment charges may apply.
- Interest is calculated daily and charged monthly.
- You can only apply in branch.
- Branches open 7 days a week.
- Branches located throughout England, but not Wales, Scotland or Northern Ireland.
Website: Metro Bank Business Loans
Read the full Metro Bank Business Finance review.
6. NatWest
- Borrow from £1,000 up to £50,000.
- Unsecured available.
- A personal, director or member’s guarantee may be needed.
- Repayment over 1-7 years. Up to 10 years available on request.
- Fixed interest rates so monthly repayments stay the same.
- No arrangement fees.
- No early repayment charges.
- Existing customers are automatically eligible.
- Loans are available to existing and new customers.
- Repayment holidays may be available for existing customers for up to 12 months.
Website: NatWest Business Loans
Read the full NatWest Business Finance review.
7. TSB
- Borrow from £1,000 up to £1,000,000.
- Unsecured options available.
- Both fixed rate and base rate linked loans available.
- Repay over 1 to 25 years.
- 9.94% APR representative (fixed).
- Repayment holidays are optional.
- Arrangement fee of up to 1.5%.
- Both sole traders and small business owners are eligible.
Website: TSB Business Loans
Read the full TSB Business Finance review.
8. Royal Bank of Scotland
- Loans from £1,000 to £50,000.
- Unsecured loans are available.
- A personal, director or member’s guarantee may be needed.
- Repay at a fixed monthly interest rate.
- No arrangement fees.
- No early repayment charges.
- Repayment over 1 to 7 years (up to 10 years available on request).
- Open to existing and new customers.
- Existing customers are eligible and online application is quick and simple.
- Existing customers may be eligible for a 12 month repayment holiday.
Website: Royal Bank of Scotland Business Loans
Read the full Royal Bank of Scotland Business Finance review.
9. Ulster Bank
- Open to businesses trading in Northern Ireland only.
- Unsecured options are available.
- Borrow from £1,000.
- Repay up to 25 years.
- An arrangement fee of £150 for loans up to £15,000.
- Loans over £15,000 have an arrangement fee of 1%.
- Online application takes around 8 minutes.
- Flexible repayments rates linked to the Ulster Bank base rate.
- Existing Ulster Bank customers could be eligible for a repayment holiday.
- Open to existing and new customers.
Website: Ulster Bank Business Loans
Read the full Ulster Bank Business Finance review.
10. 365 Business Finance
- Offers fast and flexible finance.
- Unsecured business loans and Merchant Cash Advance.
- Designed for small and medium-sized businesses including sole traders, partnerships and limited companies.
- £5,000-£200,000 available unsecured.
- Typical repayment terms are 5-10 months.
- Approval within 24 hours.
- No fixed weekly or monthly payments.
- No admin charges.
- Repayment through a percentage of your customer card transactions.
- Flexible repayments depending on how much cash is processed through your business.
Website: 365 Business Finance Business Loans
Read the full 365 Business Finance review.
11. ABC Finance
- Finance broker, not a direct lender.
- Various unsecured loans are available.
- Borrow from £500 to £500,000.
- Rates from 1.9%.
- Repayments over 6 months to 5 years.
- Some loans can be completed in 5 days.
- Minimum trading length of 2 years.
- A personal guarantee may be required.
- No upfront or broker fees.
- Terms can be received in an hour.
Website: ABC Finance Business Loans
Read the full ABC Finance review.
12. ArchOver
- Investment broker, not a direct lender.
- Connects a community of investors with borrowers.
- Borrow from £100,000.
- Unsecured lending specifically for R&D tax claims, Creative Tax Relief Claims and Grant Receipts.
- Repayment from 3 months to 3 years.
- Interest from 9.5% p.a.
- No personal guarantee is needed.
- No equity dilution.
- Credit decisions reached in 48 hours.
- 4.4/5 star rating on Trustpilot.
Website: ArchOver Business Loans
Read the full ArchOver Business Loans Finance review.
13. Aspire Business Loans
- Finance broker, not a direct lender.
- Search and compare 80 lenders for free.
- No impact on your credit score.
- Offers a range of unsecured loans
- Borrow £5,000 to £300,000.
- Repayment periods from 1 to 5 years.
- Same day decisions are available depending on the lender.
- Businesses must have 1-year banking history.
Website: Aspire Business Loans
Read the full Aspire Business Loans Finance review.
14. Capify
- Unsecured loans from £5,000.
- Opportunity to raise more funds.
- Alternative finance specialist.
- Flexible repayments.
- Repay through a percentage of your takings.
- Automated repayments.
- Suitable for businesses trading for over 12 months.
- Open to limited companies that process more than £10,000 a month.
- Dedicated account manager to help you through the application process.
- UK based support.
Website: Capify Business Loans
Read the full Capify Business Finance review.
15. Cubefunder
- Flexible business loans.
- Unsecured financing between £5,000 – £100,000.
- Can be used for any business purpose.
- No late payment charges.
- No early repayment fees.
- Flexible repayment options.
- Eligible for businesses trading for at least 3 months.
- Open to limited companies in England and Wales.
- Apply online in 2 minutes.
- Receive funds within 48 hours.
Website: Cubefunder Business Loans
Read the full Cubefunder Business Finance review.
16. Fleximize
- Loans are available from £5,000 to £500,000.
- Unsecured options are available.
- Repay over 3 months to 4 years.
- Rates of 0.9-3.9% per month.
- Top-ups and repayment holidays are available.
- Early repayment allowed and pay less.
- No hidden fees.
- Get a decision in 24 hours.
- Open to UK SMEs.
- Provides customers with access to their Knowledge Hub and Member Marketplace.
Website: Fleximize Business Loans
Read the full Fleximize Business Finance review.
17. Funding Circle
- Borrow £10,000 to £500,000 unsecured.
- Rates between 2.9%-12.1%.
- Repay over 2 to 5 years.
- Check if you qualify online in 30 seconds.
- Apply online in 10 minutes.
- Decisions in as little as a few hours.
- Receive a personalised quote.
- Money will be deposited straightaway.
- Set up and early repayment fees apply.
- ‘Excellent’ Trustpilot rating.
Website: Funding Circle Business Finance
Read the full Funding Circle review.
18. iwoca
- Offers a flexible loan.
- Borrow from £1,000 to £200,000.
- Repay over 12 months.
- Apply online in 5 minutes.
- Open to sole traders, partnerships and limited companies.
- Dedicated account manager.
- Decision in 24 hours.
- Receive the money within hours.
- No fees for repaying early.
- ‘Excellent’ Trustpilot rating.
Website: iwoca Business Finance
Read the full iwoca review.
19. PFC Finance
- Broker with a panel of 60 lenders. Not a direct lender.
- Unsecured commercial loans.
- Open to sole traders and limited companies.
- Borrow £5,000 to £1 million+.
- Repay over 3 months to 5 years.
- Same-day decisions are available.
- Dedicated account manager.
- Funds can be released in 24 hours.
- Early repayment options are available.
- Finance for improving working capital, expansion, refurbishment, and more.
Website: PFC Finance
Read the full PFC Finance review.
20. Rangewell
- Business loan aggregator. Not a direct lender.
- Flexible unsecured loans
- Loans up to £250,000.
- Rates from 4.9%.
- Fixed monthly payments.
- Repay over 1-60 months.
- Apply online or call them.
- No early repayment charges.
- Directors guarantee needed.
- Funding can be available in 5-7 business days.
Website: Rangewell Business Loans
Read the full Rangewell Business Finance review.
21. rebuildingsociety.com
- Peer to peer lending platform. Funds are provided by lenders investing in the platform.
- Unsecured loans are available.
- Borrow £25,000 to £250,000.
- 6-60 months terms.
- Interest rates from 5%, rates are lower if security is provided.
- Fixed monthly repayments.
- Decision within 24 hours where possible.
- Apply online application.
- No early repayment fee.
- No hidden costs.
Website: rebuildingsociety.com Business Finance
Read the full rebuildingsociety.com review.
22. Satellite Finance
- Finance broker that can connect you to over 40 lenders.
- Unsecured loans are available.
- Search for the best deal for you.
- Amount and repayment terms depend on the lender.
- Loans from £3,000 to £1,000,000
- Terms from 1 week to 10 years.
- Payment can be within 24 hours.
- Competitive and flexible loans.
- Commercial loans can be used for any business purpose.
- Check eligibility online or call them.
Website: Satellite Business Finance
Read the full Satellite Finance review.
23. Spotcap
- Currently not accepting new applications during Coronavirus crisis.
- Unsecured loans are available for up to £350,000.
- Designed for well-established businesses.
- Receive a decision in one working day.
- Provides a team of underwriting experts.
- No early replacement fees.
- Straightforward application process.
- Can be used for a variety of reasons.
- A personal guarantee may be required.
- Headquartered in Berlin.
Website: Spotcap Business Finance
Read the full Spotcap review.
24. Starling Bank
- Unsecured loans of £5,000 to £250,000.
- Repaid over 1-5 years.
- Open to businesses trading for more than 18 months.
- Must have a Starling Bank business current account to qualify.
- Loans up to £25,000 have a representative rate of 7% APR (fixed).
- 24/7 online customer service.
- Provides an app to manage your finances.
- Customer services are also available over the phone, email and in-app chat.
- Personal guarantee required from all directors/partners in the business.
- ‘Excellent’ Trustpilot rating.
Website: Starling Bank Business Finance
Read the full Starling Bank business loans review.
25. Startup Loans
- Part of the Government-backed British Business Bank.
- Open to new businesses that have been trading for up to 24 months.
- Borrow up to £25,000.
- Fixed interest rate of 6% per annum.
- Repayment over 1-5 years.
- Includes 12 months of free mentoring.
- No setup or arrangement fees
- No early repayment fees.
- Partnered with The Open University to offer free courses.
- Provides a range of business support and tools.
Website: Start-up Loans Business Loans
Read the full Start-up Loans Finance review.
26. White Oak UK
- Borrow £25,000 to £2,000,000
- Unsecured options.
- Repayment 3 to 48 months.
- Short term loans and longer-term business development loans are available.
- Can be used for a variety of purposes.
- Interest only options are available.
- Must have been trading for over 3 years.
- Have a track record of profitability.
- Apply online or request a callback.
- Feefo Platinum Trusted Service Award 2020.
Website: White Oak UK Business Finance
Read the full White Oak UK review.
27. Intelligent Loans
- Loans from £10,000 to £150,000.
- Offers a flexible approach to loans.
- Short and long term loans available.
- Repayment over 3 months to 5 years.
- Unsecured loans available.
- Can be used for a variety of business reasons.
- Provides a personalised approach.
- Suitable for established business with a turnover over £25,000.
- Helps businesses with a cash injection.
- Part of the 1pm plc group.
Website: Intelligent Loans Business Finance
Read the full Intelligent Loans review.
28. Just Cash Flow
- Unsecured loans from £10,000 to £85,000.
- Repay over 12 months.
- Choose from flexible interest only or capital and interest loan repayment options.
- Monthly interest from 1.75%.
- 3 month repayment holiday available at the start of the loan.
- Debt can roll over into a revolving credit facility after 12 months.
- Apply online or call them.
- Open to Limited companies, LLPs and PLCs.
- Personal guarantee from directors may be required.
- ‘Excellent’ TrustPilot rating.
Website: Just Cash Flow Business Finance
Read the full Just Cash Flow Loans review.
29. inFund
- A live multi-drawdown credit facility.
- Access £2,000 to £150,000 unsecured.
- Repayment terms up to 24 months.
- Simple application process.
- Daily repayments made by Direct Debit.
- Open to small and medium businesses with 6 months’ of accounts.
- Sign up online
- Register and they will assess the level of credit they will offer you.
Website: inFund Business Loans
Read the full inFund Business Finance review.
How do unsecured business loans work?
Unsecured business loans are very similar to an unsecured personal loan. If your business needs a cash boost you can apply for a business loan and then repay the amount plus interest over a set period, whether that’s a few months or several years. An unsecured loan isn’t secured on any of your business’ assets, but some unsecured loans still ask for a personal guarantee from you as the business owner, so always read the details carefully.
How much can my business borrow?
How much a business can borrow depends on the lender, its terms, and your circumstances. Unsecured loans are usually for lower amounts than secured loans. If you want to borrow more, securing a loan on property or assets might be your only option. If you’re happy to borrow a lower amount you can shop around several unsecured options to find the best deal.
How much will an unsecured business loan cost?
Interest rates can be fixed or flexible. Fixed means your repayments are the same every week or month, and flexible means they can be different. If your unsecured loan is fixed the repayment amount will be agreed upfront with the lender. To find out what the average borrower pays, check the representative annual percentage rate (APR). This isn’t necessarily the rate you’ll get but it’s a good way to estimate the average costs before you apply. If this isn’t advertised you might be able to check your eligibility with the lender for free instead.
Business loans sometimes have extra fees for set-up and early repayment. The lender will state these fees upfront too so always check the terms of the loan and the small print so you stay informed.
How long can I borrow money for?
Short term unsecured loans are usually repaid within 3 to 12 months. A long term loan will usually be repaid over 5-7 years. The big high street banks often allow longer agreements of 10, 15, or 25 years.
How do I apply for an unsecured business loan?
If you find a lender that offers good terms for an unsecured loan you can usually apply online. This is usually quick and convenient with minimal paperwork. Sometimes you can get a decision within just 24 hours, but it often takes a few days.
Some lenders don’t accept direct applications so you’ll need to work with a business finance broker or apply through a broker’s online platform. A broker will find appropriate business loans for your business and make the application on your behalf. This can sometimes involve an extra fee.
* Please note we have an affiliate relationship with Capital On Tap, which means we get paid if you open an account with them. This comes at no cost to you.