What is a small business unsecured loan and how does it differ from a secured loan?

A small business unsecured loan is a loan that is obtained by some means other than putting up collateral (security) against the amount borrowed. Instead, some other criteria must be met ? ones credit rating is often used to determine if someone is an acceptable candidate for a small business unsecured loan.

Obviously, there are tremendous advantages to an unsecured loan. A secured loan is so named because the business funding it provides is secured by offering up collateral. So, if you cannot repay the loan money, you lose your security collateral instead. With a small business unsecured loan, you may suffer other consequences for a lack of repayment, but at least you will not lose your company’s assets, which can include land, vital office equipment or manufacturing machines, or even company owned vehicles.

A small business unsecured loan is not as common amongst commercial lending loan sources, such as banks, as it is with UK Government funding sources due to the higher risk to the lender that exists when the business loan is not secured.

If you are looking into accessing reliable research assistance, try looking into available UK Government small business unsecured loan opportunities by calling a UKStartups.org agent at 020 3880 8554, or by accessing our free Startup Assessment Tool app online.

There are hundreds of government funding schemes available for small business owners in the UK. In fact, our Funding Database currently has over 600 government funding schemes and over 500 private investors available for small business owners and startup entrepreneurs. What are you doing to take advantage of this? Become a member and start your search.

Take advantage of the Small Business Startup Assessment Tool below and see the tools and resources you need to succeed at starting your small business. It just takes 30 seconds and will also tell you if there may be any funding assistance available.

Be sure to look at the hundreds of daily questions and answers we have from entrepreneurs like you who want to learn more about starting a business, creating a business plan, searching for funding. Our small business experts take the time to answer each and every single question, so if you have something on your mind – we can help!

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