Unsecured business loans in the UK, compared on published terms
An unsecured business loan lets you borrow without putting up property or equipment, but for most small firms it is not risk-free, because lenders usually want a personal guarantee from the directors. Across our partner's panel, unsecured rates run 7% to 44% a year against 6% to 22% secured, and your trading record decides where you land.
Figures checked 1 November 2026.
What unsecured really means
“Unsecured” means the lender takes no charge over a specific asset. It does not mean nobody is on the hook. For a limited company the lender's fallback is usually a personal guarantee: if the company cannot pay, the director can be pursued for the debt. A guarantee is not the same as a charge on your home, and under the Growth Guarantee Scheme principal private residences cannot be taken as security.
Published terms from UK lenders
| Lender or scheme | Amount | Price (published) | Guarantee and catches |
|---|---|---|---|
| NatWest Small Business Loan | £1,000 to £100,000, 1 to 7 years | Representative 12.57% APR (11.90% fixed) on £10,000 over 22 months | A personal, director or member's guarantee may be required. No set-up fee and no early repayment fee. |
| Funding Circle | £10,000 to £750,000 | From 6.9% a year | Trading 1 year or more; no fees to settle early. If you're approved for a Funding Circle business loan, a personal guarantee will be required. |
| Start Up Loans | £500 to £25,000 per founder | A fixed 7.5% a year | A personal loan: you owe it, not the company. |
| Growth Guarantee Scheme lenders | Term loans from £25,001 to £2m | Set by each lender | Personal guarantees can be taken at the lender's discretion; you remain 100% liable. |
| CDFIs | Typically £25,000 to £250,000 | Not published centrally | For businesses banks turn down; unsecured loans usually need a personal guarantee. |
Card-sales advances are also unsecured, but they are not loans: the provider buys a share of future takings and is not regulated by the FCA. See what a merchant cash advance is.
Unsecured vs secured, worked through
£50,000 over 36 months, priced at the middle of each panel range (checked 1 September 2026):
| Rate | Monthly | Total interest | |
|---|---|---|---|
| Unsecured | 15% | £1,733.27 | £12,397.59 |
| Secured | 10% | £1,613.36 | £8,080.94 |
The arithmetic: £12,397.59 − £8,080.94 = £4,316.65 over three years, or £119.91 a month. Against that, secured lending adds valuation and legal fees and puts the asset at risk. For £50,000, most owners are better off paying the unsecured premium; for six-figure sums over long terms, the secured saving starts to justify the paperwork.
What decides your rate
- Trading history. The further back your filed accounts go, the cheaper the end of the market you can reach.
- Bank statements. Steady inflows and no unpaid items matter more than a high turnover.
- Credit files. Both the company's and the directors'. See our bad credit business loans guide if yours has marks.
- Existing debt. Lenders add up every repayment you already make, including any card-sales advance.
When to choose something else
If you only need the money for a few weeks, an overdraft is usually cheaper than a term loan; see overdraft vs loan. If you are not prepared to sign a personal guarantee, read funding without a personal guarantee before you apply anywhere. And if your business is under five years old, check Start Up Loans first: at 7.5% nothing else unsecured comes close.
Compare unsecured offers, no credit check to quote
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Questions people ask
Can I get an unsecured business loan without a personal guarantee?
Sometimes, but expect to be asked for one. NatWest states that a personal, director or member's guarantee may be required, and even Growth Guarantee Scheme lenders can take personal guarantees at their discretion. A guarantee means the lender can pursue you personally if the company cannot pay. Our guide to funding without a personal guarantee covers the options that avoid one.
Can a new business get an unsecured loan?
Yes, mainly through Start Up Loans: £500 to £25,000 at a fixed 7.5% a year, unsecured, for businesses trading less than 5 years (60 months). Most commercial unsecured lenders want at least a year or two of accounts.
Are there unsecured business loans with no credit check?
No genuine loan skips the credit check. Card-sales advances come closest because offers rest on your Square sales data, not your credit history, but they are not regulated by the FCA and priced as a fixed fee. What you can avoid is a hard search at the quote stage: lenders such as Funding Circle check eligibility without affecting your credit score.
How much can I borrow without security?
Published limits run from £1,000 to £100,000 at NatWest to £10,000 to £750,000 at Funding Circle for limited companies. What you are offered depends on turnover, profit and existing debt; the larger the sum, the more likely the lender is to ask for security or a guarantee.
Is an unsecured loan more expensive than a secured one?
Usually. On our partner's panel unsecured rates run 7% to 44% a year against 6% to 22% secured. On £50,000 over 36 months, the middle of each range differs by £4,317 in interest. You pay that premium to keep your property out of it.
Sources
Every figure on this page comes from the lender's or scheme's own published page, read on 1 November 2026. Panel rate ranges come from our partner's lender-panel catalogue, checked 1 September 2026. We do not use comparison sites as sources.
- NatWest, Small Business Loan
- Funding Circle, business loans
- Funding Circle, small business loans
- British Business Bank, Start Up Loans guidance
- business.gov.uk, Applying for a Start Up Loan
- British Business Bank, Growth Guarantee Scheme
- Square, Cash Advance
- British Business Bank, What to do if a bank turns you down
- British Business Bank, Who qualifies for a loan from a CDFI?