Speed of Funding: Fast
Terms: upto 12 months
Repayments: Weekly or Monthly
Interest Rates: High
What is an Unsecured Term Loan?
An unsecured term loan is a business loan granted where the loan is supported by the borrower’s creditworthiness rather than any collateral or security. This means that the cash flow and profitability of your business will be a very important part of the lender’s credit rating decision. Because there is no security, the risk is higher and so the interest rates charged by the lender are normally higher. Unsecured loans are normally short term loans ranging from 3 months to 3 years.
Low value loans
No collateral or security required
Little paperwork involved
Great for working capital funding
Short timeframes of loan period
May require director guarantee
High interest rate