Unsecured business loans in the UK

• Monthly bank credits and how consistent they are across the year.
• Filed accounts at Companies House and how recent they are.
• Company and director credit history, including any CCJs or defaults.
• Existing loans, facilities and charges already registered.
• The purpose of the funds and what the company expects them to return.

If none of that is clean, the picture is not automatically closed — see business loans with bad credit.

• Unsecured — no charge over a specific company asset; the provider may still require a personal guarantee.
• Secured — a charge over property or equipment, with valuation and legal work potentially required.
• Asset-backed alternatives — the provider assesses the asset as part of its security and pricing decision.

If the money is for equipment, vehicles or machinery, asset finance describes funding tied to equipment. For cash held in unpaid invoices, see invoice finance.

A personal guarantee makes the director liable if the company cannot repay. It is standard on unsecured commercial lending and it is not a formality. Read the wording, check whether it is capped, check whether it is joint and several with other directors, and consider personal guarantee insurance. This page is general information, not advice.

Before committing, run the amount and term through the business loan calculator and compare total repayable, not the monthly figure. Pricing context sits on business loan interest rates, and the qualifying picture on business loan eligibility.

What is an unsecured business loan?

A commercial loan that is not tied to a specific asset such as property, machinery or a vehicle. There is no charge over an asset the lender can sell if the loan is not repaid, so the decision rests far more heavily on trading performance and credit history.

Do unsecured business loans still need a personal guarantee?

Usually yes. Most UK unsecured commercial lending is supported by a director's personal guarantee. That is a personal promise to cover the debt, not a charge over a company asset, and it is a genuine personal liability worth taking advice on before signing.

How much can a limited company borrow unsecured?

Lenders generally size unsecured facilities against turnover rather than assets, so monthly bank credits and consistency matter more than the balance sheet. Larger amounts tend to move towards secured or asset-backed structures.

Is unsecured borrowing more expensive?

Typically yes. The lender carries more risk without security, and that risk is priced in. Compare the total repayable in pounds rather than the headline rate before deciding.

Is Backed a lender?

No. Backed is an independent introducer. We pass your enquiry to funding partners whose criteria it may fit. Any decision, terms or offer is theirs.

Backed may introduce your company to one or more funding partners whose criteria may fit. Providers determine eligibility, approval, pricing and terms.

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• How to get a business loan in the UK — What lenders look at, the funding types available, and how to apply.
• How business loans work in the UK — Terms, rates, repayments and personal guarantees explained.
• Business loan calculator UK — Monthly payments, interest-only comparison and total cost before you apply.
• Commercial business loans in the UK — Business lending products, what lenders assess and how to compare offers.
• Business loans with bad credit — What is still fundable when the credit file is not clean.
• Invoice finance explained — Turning unpaid invoices into working capital.