Best Unsecured Business Loans in the UK
Virtually all businesses in the United Kingdom – 99.9% – are SMEs. In other words, High Street shops, home-based businesses, and small industrial concerns are the lifeblood of our economy.
Through no fault of your own, enterprises like yours can suddenly be starved of cash. That’s why it’s crucial to have easy access to credit.
Below, we’ve reviewed the top providers of unsecured loans in the UK. Check them out – we’re confident you’ll find one that’s right for you.
Top Business Loan Providers In The United Kingdom
The UK business loans market is rife with options – too many options. Trying to sort out the right firm can be an unbelievably difficult task.
To be frank, it’s a poor use of your time. So, we’ve done the research for you – below, we’ve selected the top six business loan companies currently trading in the United Kingdom.
Loan Types: Small business loans. Availability: All UK businesses, minimum turnover £10,000. Securities: Unsecured business loans. Loan amount: £1,000 – £120,000. Interest: From 1.75% per month. Overall Rating: 4.6 / 5.0
Need cash fast? If you require liquidity in hours, Ezbob can fund you in minutes. 15- 20 minutes, to be exact. Required documentation is minimal, which explains how they process applications so quickly. It seems too good to be true, but Ezbob is legit – they have a 9.5/10 rating on Trustpilot. Do watch out for their interest rates, though, as they start at 1.75% – per month.
Loan Types: P2P lending. Availability: Established, profitable businesses in the UK. Securities: Secured. Loan amount: £500,000 – £3,000,000. Interest: 6.41% to 16.86%. Overall Rating: 3.0 / 5.0
During the Global Financial Crisis, even well-established businesses got the cold shoulder from banks. In 2011, ThinCats, a P2P lending platform, was launched to help solve Britain’s liquidity crunch. They provided companies with track records with badly-needed capital. Today, ThinCats continues to match investors with reliable borrowers. Today, their Interest rates are among the lowest in the private lending industry. However, their acceptance rates are also among the lowest – so manage your expectations.
Loan Types: P2P business lending & cash advances. Availability: UK businesses. Minimum turnover £3,000 per month, 20% minimum margins. Securities: Unsecured & secured. Loan amount: £1 – £100,000. Interest: n/a. Overall Rating: 4.5 / 5.0
When sudden drops in revenue occur, cash advances can save your business. Fleximize offers ready access to these loans, as well as P2P financing. Approvals are fast, with most applications taking only a few hours. This loan provider also understands downturns can be stubborn. With each loan, they allow borrowers to take two “holiday months.” During this time, you only pay the interest. The only strike against Fleximize? They don’t openly advertise their interest rates – an odd choice given most others do.
Loan Types: Small B2B Loans. Availability: UK businesses. Minimum turnover £10,000 per year. Securities: Unsecured. Loan amount: £1,000 – £50,000. Interest: 4% – 14% (1-6 month terms). Overall Rating: 3.9 / 5.0
E-commerce operators struggle to get funding from banks. So, in 2012, iWoca started lending to web businesses. Today, they serve companies of all kinds, but online operators remain their main clients. Sole traders can apply for funding – that fact alone separates iWoca from the pack. However, the flip side of their accessibility is their high-interest rates. They charge rates of 4% to 14% over one to six-month terms.
Loan Types: Merchant cash advances. Availability: UK businesses. Securities: Secured (against invoices). Loan amount: £2,500 – £300,000. Interest: High, variable. Overall Rating: 3.7 / 5.0
Need liquidity, but fear hefty loan payments? Liberis Cash Advance offers loans that fit hand-in-glove with your High Street business. Rather than offer traditional loans, Liberis Cash Advance instead takes a portion of daily card sales. Businesses pay more in good months, and less during bad months. Clients also love Liberis for their simple application process and their speedy approvals. One drawback – some clients end up paying more in interest with this model.
Loan Types: B2B loans and cash advances. Availability: UK businesses (2 years+). Securities: Secured. Loan amount: £2,600 – £100,000. Interest: 8.5% to 12% (B2B loans), 8.5% to 15% (cash advances). Overall Rating: 2.8 / 5.0
Private lenders are more convenient than banks. However, their high-interest rates can turn off many would-be borrowers. This situation has created an opening in the market for P2P lenders – like Rebuilding Society. It seems they have struck a chord, as Investors enjoy upwards of 15% returns. Meanwhile, borrowers have gotten interest rates of 8.5% to 15% – not bad by non-bank standards. Do be patient, though – some applications can take two days to process.