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Unsecured Business Loans
Do you need a loan to grow your Small or Medium Size Enterprise? If so, we have Unsecured Business Loans available for small businesses in the South and West Country.
What are Unsecured Business Loans?
Unsecured Business Loans are flexible medium-term finance solutions for businesses that need capital upfront, usually for larger purchases or cashflow needs. This type of finance does not require the borrower to offer tangible security. Typically, the Borrower can access funding for a range of purposes, and repayments are made within an agreed timeframe.
The term of the loan is agreed upon from the outset so the borrower knows how long they will be repaying the loan.
Our decisions are made by people, not computers, which means that we lend by looking at the bigger picture.
Our business managers provide support and guidance throughout the application process to give our customers the best chance for success.
How does Unsecured Lending differ from Secured Lending?
The main differentiator between Secured and Unsecured Lending is security.
Secured Business Loans require the borrower to provide tangible security against collateral, like a charge over a property, whereas unsecured loans do not require a charge over a property. However, unsupported Personal Guarantees are typically required as well as a debenture from the company, which will typically rank behind existing charge holders. Unsecured Lending does not require security, the loan process is usually faster for Unsecured Lending.
How are Unsecured Business Loans Repaid?
Repayment terms are usually up to 60 months and are agreed upon with the Borrower at the outset. This ensures the loan is repaid within a fixed timeframe allowing the borrower to plan and budget. Early repayment of the loan is often available, but some lenders may charge a penalty.
What are Personal Guarantees and Debentures?
Personal Guarantees are provided by the Borrower so that in the instance that the business cannot repay the loan, the Borrower will become personally liable for the repayment of the loan.
Loans can be settled in full or by way of an arrangement to repay the loan over an agreed period of time. The Borrowers’ principal private residence is excluded from Personal Guarantees given to SWIG Finance. Debentures are a charge against floating assets of a limited company. A debenture gives the lender some rights over these assets and also the ability to step in and run the company if necessary. Debentures given to SWIG Finance will rank behind existing charge holders.
The debenture will be registered at Companies House.
What can Unsecured Lending be used for?
SWIG Finance provides Unsecured funding for a range of purposes, including cashflow, recruitment – covering new starters’ salaries for a few months, operations, purchase of new equipment and machinery and research and product development.
What are the benefits of SWIG Finance Unsecured Business Loans?
- Offers a medium-term finance solution
- No tangible assets are required as security
- Borrow £25,001 up to £250,000
- Repayment terms up to 60 months
- We can lend by looking at the bigger picture – what is the business planning to do, who is behind it as well as what the business has done
- An assigned local business manager to support your loan application – they will spend time talking to the business owner to really understand what their plans are and how they hope to achieve them.
- Ongoing relationship support for the duration of the loan – our Business Managers are there to talk to if the business owner needs some help and guidance
We have Start Up Loans for businesses trading less than 3 years
Is my business eligible for a business loan?
The CBILS Scheme closed with effect from 31 March 2021. Learn more here.
Business Loan characteristics
- ✓ Loan value from £25,001 – £250,000
- ✓ Finance for working capital or growth (e.g. equipment)
- ✓ Tangible security is not required
- ✓ We are an accredited Growth Guarantee Scheme lender
- Terms & Conditions Apply
Security
- Fixed & floating debenture taken (ranking behind existing charge holders, if appropriate)
- Unsupported personal guarantees are typically required for business loans
Information required to apply for a business loan:
– Last 2 years' full accounts (if available)
– Most recent management accounts
– Cashflow forecast for a minimum of 12 months
– Last 6 months business bank statements
– Credit Report for all directors
Amount & Term
£25,001 – £250,000 repayable up to 60 months
Interest Charge
Charged at 12% ABR
Fees Arrangement
Fee of 5% charged at outset
Disclaimer: This repayment calculator is designed to outline the arrangement fee, monthly loan repayments and the total amount repayable for different loan terms. The actual amount payable may change depending on the agreed term and loan amount. We charge interest at 12% Above Base Rate (ABR). Base rate is currently 3.75%.
Terms and conditions apply, Credit is subject to status, affordability assessments and credit checks.
What our customers say...
"SWIG provided us with the funds we needed at a key inflection point for the business. It enabled us to invest in the stock and the people to meet rapidly increasing demand for our brand and products.
Since then, the business has grown by at least 6x, profitably. We are super grateful for their support and understanding of our business growth plans and vision."
Simon Hills
Managing Director
TrueStart Coffee
What funding sources are available?
SWIG Finance offers Business Loans to small businesses through its own ethically sourced capital and lends through a sustainable lending framework.
#SWIG Finance is also an accredited delivery partner for the British Business Banks Growth Guarantee Scheme, which means we will lend where tangible security isn’t available. For business acquisitions, SWIG Finance can explore a finance package that combines more than one loan product, where this is in the best interest of the customer
For businesses that have been trading for under three years, SWIG Finance also offers Start Up Loans through the government-backed Start-Up Loans Scheme. Loans range from £500 up to £25,000. These are personal loans for business use.
How to apply for an unsecured business loan?
To apply for a Business Loan, you will need to complete our online application form.
Information we will need to assess your loan request:
- Last 2 years’ full accounts (if available)
- Most recent management accounts
- Cashflow forecast for a minimum of 12 months
- Last 6 months business bank statements
- Credit Report for all directors
Apply now to take the next step in securing the funding your business needs.
Our Application Process
We assess each business on its own merit. To apply, please complete our online enquiry form below. Initial enquiries welcomed to establish suitability. Once we have received all the information we need to consider your application, the decision will be made as soon as possible.
Apply Now
If you're ready to take the next steps, apply now!
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Got a question?
Give us a call today and we will answer any question you may have.
Is my Business eligible for a Business Loan?
Business Loan characteristics
✓ Loan value from £25,001 – £250,000
✓ Finance for working capital or growth (e.g. equipment)
✓ Tangible security is not required
✓ We are an accredited Growth Guarantee Scheme lender
Terms & Conditions Apply
Apply now to take the next step in securing the funding your business needs.
Do you need to borrow less than £25k?
We have Start Up Loans available for businesses that have been trading for less than 3 years.
Apply for a business loan now
Please complete the below enquiry form and a member of the team will be in touch.
Read more about our business loans requirements here.
Gloucestershire Bed Manufacturer Expands
Case Study, SME
The Cotswold Bed Company in Cheltenham has been able to expand and invest thanks to a £184,000 finance boost via SWIG Finance. Husband-and-wife co-owners Paul and Alejandra Whitelocks have used the money to buy specialist equipment and employ four new staff members in a bid to enhance their bespoke offer to high-end clients.