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Unsecured Business Loans
Do you need a loan to grow your Small or Medium Size Enterprise and are based in the South West? If so, our Unsecured Business Loans could help you.
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, and for the duration of the loan, 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 SWIG Finance Unsecured Business Loan?
SWIG Finance provides Unsecured Business Finance for South-West-based Limited Companies that have been trading for over two years.
What documents do we require for Unsecured Lending?
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since the most recent year-end to date
- Cashflow forecast for a minimum of 12 months, identifying the loan requirement and showing spending
- Agreement to Open Banking Report
- Business plan / executive summary overview
- Details of any agreed outputs e.g. number of jobs created or safeguarded
- ✓ You must be 18 or over.
- ✓ Limited companies only can apply.
- ✓ You must be a business with a clear plan for the purpose of the loan.
- ✓ The business must be able to demonstrate viability and growth potential.
- ✓ The business must be based in the South West of England.
- ✓ Applicant businesses will typically have been trading for more than 2 years.
How much can an SME borrow from SWIG Finance?
SME Loans from £25,001 up to £250,000 are available.
What are the interest rates and fees?
For a business loan of £25,001 to £250,000 repayable up to 5 years, the interest rate is 12% ABR.
There is a 5% arrangement fee at outset, which can be added to the loan. If any payments are missed or late there may be additional fees.
“We chose to work with SWIG Finance because, unlike other lenders, at SWIG you can talk to a person. Ultimately, SWIG Finance were able to support our business by looking at the bigger picture – something which other lenders are not willing to do.”
Customer Testimonial, SME Business Owner
What funding sources are available?
SWIG Finance offers Unsecured Business Loans to SMEs 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 Recovery Loans Scheme, which means we will lend where tangible security isn’t available
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 loan?
To apply for an Unsecured loan, you will need to complete our online application form.
Information we will need to assess your loan request:
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since the most recent year-end to date
- Cashflow forecast for a minimum of 12 months, identifying the loan requirement and showing spending
- Agreement to Open Banking
- Credit Report for all directors
- Business Plan
- Details of any agreed outputs e.g. number of jobs created or safeguarded
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.
Growing Nursery Receives Further Funding
Dorset-based Twynham House Nursery School has received further growth funding of £200k through SWIG Finance. The business began trading in 2021 at the start of the COVID pandemic and, despite a challenging start, has gone from strength to strength. SWIG Finance first supported Twynham House in its early stages with a CBILS-backed loan. The latest cash injection will help establish a second new nursery site.