Unsecured Term Loan

Type of funding?
An unsecured term loan is arranged for a fixed period, typically greater than 12 months. Unsecured term loans are provided by a wide range of traditional and alternative lenders, including peer-to-peer or crowdfunding platforms
Who is this suitable for?
Lenders will want to know what you are using the money for (e.g., hiring new employee or entering a new market) and how this will benefit your business. They may require business plans, financial forecasts, as well as personal guarantees
What are the key terms?
Costs vary significantly based on your credit rating, volume of lending and other factors. As a guide expect annualised costs to be around 7-20%
What are the key criteria to get funded?
  • Provide annual accounts and management reporting (e.g., cashflow), a business plan/ financial forecasts
  • Provide personal guarantees
  • Businesses/ directors have good credit history
  • Less suitable for businesses with limited track-record, are loss making or have recently restructured

 

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