GREENLOAN COMPANY LIMITED
Unsecured business loans for fast, flexible borrowing
With an unsecured business loan, you can access finance quickly without offering an asset, such as property or collateral, as security for the loan.
Unsecured business loans offer greater flexibility for small and growing businesses that want to borrow while keeping their company assets safe.
What are unsecured business loans?
An unsecured business loan is a type of finance that does not require the borrower to provide security. Because the loan is ‘unsecured’, businesses aren’t at risk of losing valuable business equipment, property or land when they choose this funding route.
Unsecured business loans offer a straightforward funding solution for Small-Medium businesses. You could borrow up to £5,000,000 without having to secure the loan against important company assets.
How are unsecured business loans paid back?
An unsecured business loan has a straightforward repayment structure.
You borrow money after agreeing to make fixed monthly payments at a pre-agreed interest rate. Payments are made over the loan term, until the borrowed amount has been paid back in full. With unsecured loans, interest rates can be higher.
What is the difference between secured and unsecured business loans?
As mentioned above, unsecured business loans aren’t backed by any assets.
Because of this, they pose greater risk for the lender, and higher interest rates are usually charged. In contrast, secured loans are financial products that require businesses to offer up collateral as part of the borrowing agreement.
What are the advantages of unsecured business loans?
There are so many benefits to choosing unsecured business finance. If you need a quick injection of cash for your business without offering the security of an asset, an unsecured business loan could offer the fast, flexible and easy funding solution you’ve been looking for. The pros of unsecured business loans include:
• Borrow £5,00,000 up to £5,000,000 +
• Does not require any asset security
• Flexible repayment terms from 1 month to 5 years +
• Minimal paperwork required
• Funds can be released quickly after approval
• Short to medium term lending solution
• Keep your company assets safe
Unsecured business loans offer great advantages for Small-Medium businesses.
Both well-established businesses and relatively new ventures can enjoy a number of significant benefits.
No assets required - With an unsecured business loan, funds can be made available faster than other types of business loans. As assets are not required as security, they offer a highly accessible source of funding for business owners.
Use for any purpose - Whether you’re looking to invest in new equipment,
expand your product range, fund for development scale up or break into new markets in the UK or overseas, there are no limits to how you use this type of business loan.
Faster approval and funding - As you do not require an asset or collateral as security for an unsecured business loan, your instant business loan could be agreed within a matter of hours. Depending on your circumstances, you could qualify for an unsecured loan of up to £5,000,000 or more.
Flexible repayment terms - Our alternative business funding can offer you a highly flexible finance arrangement; fixed repayment schedules with no hidden fees and interest rates are agreed upfront. Loans can be repaid over a short or medium term, typically between 1 month to 10 years.
Does my business qualify for an unsecured business loan?
To qualify for an unsecured business loan , you must have been trading for at least 6 months and have a minimum annual turnover of £5,000. There are unsecured loan options for sole traders too.
It is worth noting that although you will not need to secure your loan against a personal or company asset, you may be required to have a good personal and business credit history.
• Operating for at least 4 months
• Have a bank account
• Limited company, limited liability partnership (LLP) or sole traders duly registered and active.
• Annual turnover of at least £5,000
A personal guarantee or surety bond may also be required, but this could enable you to secure higher levels of funding. If your situation changes and your business is unable to repay the loan, the personal guarantor or bond may be required to pay back the remaining balance under the agreed terms.
If you do not meet these criteria, we can still help you access the finance you need. We offer a wide range of other business finance options and can help you find the right funding solution for your business.
10.What are the documents required for an unsecured business loan?
When applying for unsecured business loans, there are certain documents that you need to provide. These documents vary from lender to lender, but as a general rule of thumb you should be ready to present:
• Proof of identity and address
• Business verification documents and Incorporation Certificate
• Supporting documents (business bank statements) or Audited Financial statements
• Personal guarantee (if required for your unsecured loan agreement)
Can I compare unsecured business loan rates?
Comparing loans rates is a fundamental part of getting the right deal for your business. But it doesn’t just revolve around the best figures. There are differences between secured and unsecured business loans, with each having advantages and disadvantages to consider.
Sometimes the benefits of a particular type of business loan product can outweigh other products based on repayment values. Take, for example, a traditional business bank loan which can be expensive and involve a relatively slow administration process. You may find that an unsecured business loan from an alternative lender will present you with faster funding speeds, less paperwork and innovative repayment options. This is why it is always important to compare unsecured business loans.
If you have a number of commercial rental properties, you may wish to consolidate the cost of the properties into one long-term business loan. The assets, i.e. the rental properties, are grouped together into one portfolio with fees and terms being agreed based on the rental income.
Mezzanine Property Finance
Mezzanine property finance is a secured form of alternative lending that combines both debt financing and equity investment. It is often used to bridge the gap between a traditional mortgage, the developer’s own investment and the property value. It is typically secured by way of a second charge on the property. As well as providing additional finance if funds are lacking, mezzanine finance also enables the developer to minimize their investment contribution.
Is my business eligible for a commercial property loan?
GREENLOAN COMPANY LIMITED Commercial property finance is available to both limited companies and sole traders. As commercial property finance options vary, so too does the eligibility criteria for each product. However, in most cases, a good credit rating and evidence of a successful trading history will be required to secure this form of alternative finance.
If you do not qualify for commercial property finance, we offer a host of different finance options and can find the right solution to suit your exact needs.
What is a revolving credit facility?
A revolving credit facility is much like an overdraft in that your business can withdraw money when it sees fit to cover all kinds of business needs - from wages to replenishing stock.
Revolving credit facilities allow borrowers to engage in a cycle of withdrawing and repaying money owed. With banks now hesitant to offer overdrafts to businesses, revolving credit is a popular alternative.
A revolving credit facility (RFC) is a rolling agreement that allows funds to be accessed when needed. If you’re a Small-medium business owner looking to seek out alternative loan options, revolving credit could be the financial solution for you.