An unsecured business loan is an agreement that doesn’t require you to put up collateral against the loan. This could be in the form of assets such as property and gives lenders some security if you aren’t able to repay your loan for any reason.

Without the need for collateral, an unsecured business loan is funded with nothing more than a personal guarantee from the owner or one of the directors of a business. All the small business loans through mcl finance are unsecured, so you can avoid the stress and hassle of putting assets at risk.

Unsecured loans are available to businesses meeting the following criteria:

• – UK-based
• – Private or limited company
• – Turnover of at least £15,000 per month
• – Trading for more than 12 months

Start-ups may be able to get an unsecured business loan but we only consider businesses that have been trading for at least 12 months and are currently turning over £15,000 or more per month. We may need to see a business plan if you’re a relatively new entity, just so we can check your eligibility.

Neither type of loan is fundamentally better than the other, but in certain circumstances, an unsecured business loan might be more appropriate.

If you are looking to take out a relatively small loan over a limited period of time, say six months or a year, then an unsecured loan will usually be the right choice for your business. Secured loans involve offering up assets as security, which allows you to borrow larger amounts and repay over a number of years, a bit like a residential mortgage.

Secured borrowing gives you access to larger loans, but they also involve more risk, as a borrower. If you find yourself in a position where you are struggling to meet the repayments for your secured loan, your lender could force the sale of your assets to cover the repayments.

Unsecured business loans don’t carry this level of risk. But this doesn’t mean you can miss repayments. If you default on your unsecured loan, you can face charges and penalties, higher interest payments and a negative impact on your personal and business credit file, which can make it difficult to secure business finance in the future.

We can help businesses from a diverse range of industries. Here are some of the more common sectors we help:

• – Retail
• – Ecommerce
• – Consultancy
• – Accountancy
• – Education
• – Childcare
• – Legal
• – Hospitality

Yes, providing you meet our lenders requirements. We’ve helped a lot of businesses that have not received the support needed to survive and recover from the pandemic. We’d be very happy to talk to you about how a small business loan can help you.

When lenders make lending decisions, they are based on your business’s current financial situation. We look at your trading history and your accounts, along with some credit referencing, to help understand your needs and what you can afford to repay.

Obtaining an unsecured business loan from a bank and lenders can be an arduous and disheartening process. They have become notorious for treating small businesses unfairly and have extremely strict lending practices.

We treat all our customers with respect and understanding. Every business has different needs and we will discuss your unsecured business loan needs honestly and openly with you. We don’t pretend we are doing you a favour by providing you access with a business loan. It’s a two-way street and a partnership so you can trust us to make responsible decisions based on our expert appraisal of your business.