8 May 2015

Unsecured Business Loans

unsecured business loans

Unsecured Business Loans

The term ‘unsecured’ refers to a loan which is not directly backed by a charge over property or another asset. Typically all business loans require a Personal Guarantee (also called a Directors Guarantee), this is pretty much a given.

Commonly unsecured loans have the advantage of being;

  • Quicker to arrange and draw-down
  • Cost less to set-up
  • Don’t require the consent of your mortgage provider

What Could I Borrow?

The common misconception about unsecured lending is that only small amounts are possible or that if you wanted to borrow more then the only option was EFG.

This is natural as banks have typically always asked for security for loans above £30k, however the world has changed and moved on somewhat.

As a guide the following is available;

  • Loan amounts up to £250,000
  • Terms from 6 months to 5 years
  • Interest rates from under 6%
  • Same day answer
  • Funds in your account within 7 days
  • All paperwork completed via email
  • No detailed business plans or requirement to provide ongoing financial information

What you can borrow will be driven by a number of factors, we will guide you through this as the factors are often not what you think they are. Most unsecured lenders will ask for an amount of supporting information, we will manage this as it changes for every lender.

Typically we will ask for copies of;

  • Business bank statements
  • Last set of full financial accounts
  • VAT returns

The Advantages of Unsecured Business Loans

Put simply;

  • Speed. They are quick to get an answer and quick to draw down
  • They don’t interfere with bank facilities, you don’t need your bank’s consent or even need to discuss it with them, although there are cases where this is beneficial
  • Time saving. Because we can handle everything for you then it means minimal work for you, so you can get on with what earns you money instead
  • There are few restrictions on what purpose an unsecured business loan can be used for
  • Rarely any early repayment penalties. Where penalties exist these are generally not penal and it can still work in your favour to repay early

Why Use Lime Consultancy

The simple reasons are;

  • Our unique client guarantee – we don’t charge unless you get a suitable offer of finance
  • We will help with preparing any forecasts or cash-flows that are required
  • We protect your credit rating. We will get an outline approval before any credit searches are done, this reduces the volume of credit searches and protects your credit rating
  • Quicker answer and often better terms for you. Because we often have agreed service levels with lenders we obtain a quicker answer, because of volume we can often get you a lower interest cost

Applying

If you want to apply then please get in touch, we will do everything via email and phone.

unsecured business loans

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