When considering 'access to funding' subsequent to the reforms associated with the 2007/2008 financial crisis, a degree of scepticism regarding the term ‘unsecured’ would be forgivable, especially when mentioned in the same breath as ‘loan’.
Realistically, accessing business finance support is increasingly challenging, even with available security, so it is important to manage expectations extremely carefully when seeking to attract unsecured funding to help a business with working capital and growth aspirations.
B2B Cashflow Solutions always recommends business owners talk to their bank first and foremost, however, if the core banking relationship cannot offer a suitable solutions, we are always happy to assess any appropriate alternative options in rational priority.
Traditionally, unsecured loans have rarely been at the top of that priority list, especially for the lenders, but with the evolving 'alternative' markets continuing to diversify, and competition increasing, these markets are becoming the 'new mainstream'.
Unsecured loan funding is now a viable consideration, but could your business meet the criteria?
If your business meets the Pre-Qualification Assessment criteria we can provide an initial indication of terms, and work with you to complete the formal application process.
Call 01508 494 345 or email us
Initial qualifying Criteria, your business must:
- Be a UK limited company, or limited liability partnership (partnerships and sole-traders can be considered for loans in excess of £25,000)
- Have been trading for at least two years with two years of signed-off accounts. (some lenders will consider one-year signed-off accounts).
- Be profitable with a ‘growth trend’ and a Turnover of at least £100,000 p.a.
- Be willing to offer (UK resident) Directors Guarantees.
- Have an exemplary credit history.
- Not require the loan for property construction.
Naturally the limited lenders in this market tend to be fairly choosy about which businesses they are willing to risk investing in, and therefore the information gathering and credit application processes are stringent, but a successful application can offer flexible and competitive finance solutions where alternatives have failed?
- Unsecured term loans of up to £500,000
- Fixed rate repayment periods of up to 5 years
- Interest Rates (net fees) from 4.5% fixed
- Average APR – 11.5% Fixed (including all fees)
- Most business purposes (property excluded)
If an unsecured loan could be the perfect solution for your business, and you meet the above criteria, simply contact us to request a formal ‘Pre-Qualification’ Assessment.