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Unsecured Business Loans Offer a Less Intrusive Route to Funding, With a Simple, Fast Application Process

Unsecured loans are now freely available to UK businesses at competitive rates compared to the traditional, secured lending products offered by high street banks. The days of businesses having to provide collateral to gain access to financing are over.

A business loan that requires no security from the applicant is a far more flexible and focused funding solution — it's also a fast way to generate funding to grow your business. Unsecured business loans and similar alternative lending products don’t usually feature upfront costs but the cost of the funding may in some circumstances be more expensive as the institution providing the finance is taking a without securing security. In these circumstances, the businesses trading history becomes very important as the funder will need to feel that the amount due to be paid back can be afforded by the business in need of the money.

To aquire a secured business loan, your business must supply security, usually in the form of a tangible asset such as commercial property, stock, machinery or a vehicle. If your business becomes bankrupt or insolvent, the lender can sell the asset to recoup costs.

As such, a secured loan usually entails a lengthier application process, as there are due diligence processes to conduct such as valuations, legal costs and business checks.

For certain business owners, unsecured loans are a better funding option, as no security or collateral is required, and it’s an easier and quicker way of receiving funding.

Our unsecured business loans work for small and medium-sized businesses in need of quick business funding to finance smart, long-term growth.

If you’re running a relatively new business, it’s quite common to lack assets or the credit history to secure funding from a conventional bank. In this case, an unsecured business loan is a popular solution and a good alternative to secured business loans.

What is an Unsecured Business Loan?

A business loan that requires no security from the applicant is called an unsecured loan and is a far more flexible and focused funding solution — it's also a fast way to generate funding to grow your business. Unsecured business loans usually have a less intrusive application process, as many lenders don’t require security, which means funds are usually with the business in a few days.

Most unsecured business loans are available for UK registered sole traders, limited companies, or partnerships, and don’t usually feature upfront costs. However, the cost of the funding may in some circumstances appear more expensive, as the funds are provided without any security.

In these circumstances, the business’ trading history gains importance as it ensures the amount due to be paid back can be afforded by the business in need of the money.

Unsecured loans are also suitable for businesses with a bad credit score or poor credit history as we don’t do hard credit checks. Instead, we apply a soft credit check, and ask for 12 months of your latest card statements to evaluate your business’ trading history.

Who Can Use Unsecured Business Loans?

Unsecured business loans work best for small and medium-sized businesses in need of quick business funding to finance smart, long-term growth.

This way, unsecured business loans allow your business to access the cash you need to grow for the long term, without many of the restrictions, limited flexibility, and other disadvantages of a traditional bank loan.

Some are also suitable for businesses with a bad credit score or poor credit history as they don’t necessarily require hard credit checks – to many lending institutions a bad credit score does matter, though.

If you have bad credit or simply don’t want a small business loan with a hard credit check, our merchant cash advance might be a good alternative for you. We apply a soft credit check and ask for 6 - 12 months of your latest card statements to evaluate your business’ trading history.

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Apply in Minutes

Use future credit and debit card sales to raise a business cash advance today.

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Get your cash advance in days

Receive a lump sum directly into your bank account.

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Watch your business grow

 Repay a small portion of your monthly credit/debit card transactions.

How an Unsecured Loan Works with 365:

If a company turns over £10,000 using credit and debit cards, then the business owner can get an unsecured cash advance of £10,000. There are no interest charges, nor are there fixed terms, and the repayment will be automatically deducted as a small percentage of your credit and debit card payments.

Merchant Cash Advance - How Does it Work
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Only repay us when your customers pay you!

Receive Unsecured Finance for Your Business in Just a Matter of Days

Our merchant cash advances are entirely based on the debit and credit card transactions of your business. This fast finance alternative to the traditional bank loan is popular with businesses reluctant to be tied into secured loans with high interest rates and fixed terms, making it far more suited to the volatility experienced by small businesses.

Businesses can use our merchant cash advance as an unsecured business finance solution to raise £10,000 to £300,000 in funding. The amount of funding available through the merchant cash advance depends on the average monthly card revenue of your business.

What Are the Advantages of a Merchant Cash Advance and How Does It Differ from a Regular Loan?

Small businesses can now grow and consider scaling, improving sales revenue and company expansion. Such flexible funding now rivals that of the mainstream lenders, as business owners are provided with an alternative way to easily access funds.

We can assure you an approval within 24 hours, and only apply one, all-inclusive fee to the overall advance amount, which means there’s no interest rates, APRs, fixed payments, or late penalties you need to worry about.

In addition, repayments are flexible, so your cash flow isn’t disrupted at any time. Our cash advances are designed to be fast, easy, and convenient, so you can focus on scaling your business.

While repayment processes can have a negative impact on a business’ cash flow, with our merchant cash advance you only repay through a small percentage of your business’ credit and debit card sales. Plus, the repayments are automated, so setting up monthly payments like you would for a traditional bank loan isn’t necessary. To understand how our unsecured cash advance differs from bank loans, you can find more here.

Unsecured Business Loans Further Details

By using our merchant cash advance, you receive working capital that helps you attract new customers to your business through advertising and marketing, thereby increasing sales and generating more revenue. At the same time, by boosting your operating capital, you can pay your employees, suppliers, and other partners without impacting cash flow more easily.

Using our alternative to unsecured business loans, you will have the financial resources to purchase new equipment and supplies to improve efficiency, allowing you to generate more revenue for your business. In addition, you also have the resources to expand or renovate your location to increase the revenue potential of your business or implement other alterations to your business that you were previously unable to do due to cash flow constraints.

The current economic climate has resulted in mainstream lenders making it difficult to acquire unsecured capital, especially if the business requiring the finance has a less than reputable credit history. It is in these circumstances a mainstream or high street lender would demand additional security, whereas a merchant cash advance would work exceptionally well as an alternative source of business funding.

Unsecured business loans that are fast, flexible and require no guarantee, are becoming the standard go-to solution for businesses with a registered office in the UK looking to secure capital with flexible terms and repayments.

Our unsecured business funding is designed to provide you with the access to capital you need to grow your business, even if your business is new, has a poor credit score or suffers from any other issue that could affect its access to conventional financing. We also provide a dedicated senior funding specialist to look after your application and the funding process.

Do I Qualify for an unsecured business loan?

You can easily contact our customer services team to see if you are eligible for our merchant cash advance. The base requirements to qualify for our unsecured business loan alternative are quite simple: it's important that you've been in business for at least 6 months and that your average monthly credit and debit card turnover amounts to at least £10,000.

Flexible finance for businesses

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Choosing the right business loan for you: What you need to consider

Unsecured vs secured business loans

Banks often require security when taking out a loan, usually in the form of a tangible asset such as commercial property, stock, machinery, or a vehicle.

If your business becomes bankrupt or insolvent, the bank can sell the asset to recoup costs. As such, a secured loan from the bank usually entails a lengthier application process, as there are due diligence processes to conduct such as valuations, legal costs and business checks.

Our funding is unsecured, in that we don’t ask for security in the form of a tangible asset like a bank would. Therefore, we can process your application within 24 hours, offering you speedy access to capital.

However, the cost of our funding may in some circumstances appear more expensive, as we are providing business finance without security. This is why your business’ trading history is very important us, as we need to feel that your business generates enough cash flow to repay the loan amount.

Repayments

Traditional bank loans have fixed monthly repayments, with a set repayment period. As these repayments are fixed, you are obligated to pay a set amount each month irrespective of underlying business performance - this can cause financial stress for your business, impacting cash flow.

Our funding requires no fixed monthly repayments. Instead, there is only one, all-inclusive cost that is agreed upfront and never changes – there’s no APR, hidden fees or late penalties.

Repayments are automatically deducted from a small percentage of your card sales, meaning you only repay when customers pay you. As such, your business’ sales revenue isn’t negatively impacted.

Repayment period is typically between 6 to 10 months, however this is flexible depending on individual circumstances.

If card sales only make up a small portion of your overall business revenue, then this can impact the total amount of funding we can offer you, as we only evaluate business turnover through your credit and debit card sales.

A merchant cash advance program

Our cash advances provide thousands of business owners with an affordable way to access unsecured capital for expansion, development or to improve cash flow. Monthly payments based on future card sales allow you pay back an advance only when your customer pays you.

About 365

Registered in England, 365 Business Finance provides cash advances for small businesses in the UK. Our finance products are designed as a flexible finance solution for businesses that accept credit/and or debit sales, and are an alternative to traditional bank loans.

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We will be your business cash advance partner and help you grow your business.

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We will be your business cash advance partner and help you grow your business

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We will be your business cash advance partner and help you grow your business.

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Each customer is assigned a senior finance specialist who will be available at your convenience.

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We will be your business cash advance partner and help you grow your business.

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We ensure that every phone call and email is responded to efficiently and in a timely manner. We welcome your feedback and any suggestions you may have.

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We will be your business cash advance partner and help you grow your business.

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We will always be transparent in our dealings with you. Our fee is clearly disclosed upfront and there are no hidden costs, admin fees or extras.

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We will be your business cash advance partner and help you grow your business.

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We ensure that any data you provide to us remains confidential.

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Frequently Asked Questions View All

The main advantage of unsecured business loans is the aspect of security. Lenders do not require any security, which allows businesses to get a loan very easily.

You can use your unsecured business loan in many ways. For example, to improve your working capital in order to renovate or expand your business, to pay your employees and suppliers, or to purchase new equipment or supplies.

Yes, you can get an unsecured business loan with bad credit. With many banks and lenders, the loans will seem more expensive than with a good credit score, however. Luckily, there are several alternatives to traditional unsecured business loans that don’t require hard credit checks, like our merchant cash advance.

Even though they don’t need you to provide security, different providers have different requirements for unsecured business loans. Most define a certain period you have to be in business for, oftentimes they do a hard credit check, and some will ask for a personal guarantee. However, the exact criteria differ depending on the bank or lender.

A personal guarantee implies the use of your own assets to guarantee the loan. In other words, if your company does not have the financial resources to pay off the loan, you will have to cover it with your personal assets.

Yes, there are some unsecured business loans that don’t require a personal guarantee. However, whether you’re eligible for financing without a personal guarantee is dependent on your business' circumstances and how much funding you're looking for.

Small companies that require between £10,000 and £300,000 will benefit from our merchant cash advances as they are a quick and easy business funding solution.

While regular loans require you to make fixed monthly payments, there are no fixed payment terms with our merchant cash advance. Instead, you only repay through a small percentage of your future credit and debit card sales. Accordingly, your repayments fluctuate with your customer sales, so if you have a quiet month, your repayments will automatically decrease. Thus, your cash flow isn’t negatively impacted.

There are no interest charges, APRs or late fees, as the costs are added to the advance as a lump sum.

Yes, we provide ongoing cash advances to small and medium-sized businesses in the UK. In addition, our merchant cash advances are completely flexible, so you can apply for additional funding at any point.

Our merchant cash advance acts like an unsecured business loan, and is characterised by flexible repayments with no APR, interest rates or late fees. For this reason, many UK businesses in need of capital take out this form of loan.

With our cash advances you can apply for unsecured capital funding of a minimum of £10,000 and a maximum of £300,000. Depending on the amount of your average monthly credit and/or debit card transactions, the maximum amount of your advance may vary.

In most cases, we can provide you up to 100% of your monthly card turnover. Please do not hesitate to call our office if you need more information. A consultant will help you create a customised offer for your individual requirements.

If your business has been affected by the Covid-19 pandemic, you may also try to apply for a Recovery Loan. The Recovery Loan Scheme is offered by several lenders appointed by the British Business Bank. The purpose of this loan is to help restore the liquidity of businesses disrupted by the Covid-19 pandemic.

The Annual Percentage Rate (APR) helps you understand the cost of borrowing. It takes the interest rate and the additional costs of a credit offer into account. Every lender must tell you their APR before you sign a loan agreement.

Unlike traditional bank loans, with a merchant cash advance from 365 Business Finance you don't need to pay any interest charges or APR. All you must pay is a single lump sum, regardless of the repayment period, which is added to the cash advance. No additional fees in the form of application fees, administration fees or hidden extras will be charged to you.

Repayment of your merchant cash advance is handled through a holdback rate. The Holdback Rate is the percentage of daily credit card sales used to repay your cash advance. The interest rate corresponds to the cost of the advance, while the holdback rate applies to your daily payment.

If you are interested in a fast business loan, feel free to contact our customer support for a no-obligation quote.

There is no fixed duration of repayment. The amount you repay is already determined in advance. However, it is only a small share of your credit and debit card sales. In addition, there are no fixed monthly payments, as the repayment of a merchant cash advance depends on when you generate sales from your customers.

Yes, we work with a variety of finance brokers and introducers. This allows us to help their clients obtain unsecured financing for their business in the form of an unsecured cash advance.

Do you still have questions about our products, or would you like to clarify general uncertainties? In our training courses, we give you detailed advice on our products. You will also gain access to co-branded materials and be introduced to our dedicated partnerships team who can offer a competitive commission structure.

To learn more about our broker recommendation program, contact us by email at partnerships@365businessfinance.co.uk or by phone on 0207 1000 365.

See why more businesses are turning to a merchant cash

advance as a sensible alternative to bank loans.

Get a no-obligation quote now!

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