What is an unsecured business loan?

An unsecured business loan is a loan that does not require you to pledge specific assets as collateral. Lenders assess your application based on business performance, credit history, and cash flow. Because there is no security, unsecured loans typically carry higher interest rates than secured alternatives, but they are faster to arrange and do not put your assets at risk. Most unsecured loans range from £1,000 to £500,000 with terms of 1-7 years.

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