Unsecured business loans up to £150k

Our unsecured loans offer freedom and flexibility that other forms of business finance find hard to match

Fully unsecured, without collateral

Free, non-committal application

No fees for repaying early

Decision within one working day

We’re trusted by thousands of businesses

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Finance from Spotcap enabled us to grow. Having the support of someone believing in your vision left us feeling great.

Jennifer Hart

Director of Everyday Cashmere

Main Features - Spotcap's Unsecured Loans

Up to £150k of finance

Only pay interest on what you use

Straightforward paperless application

Funds within one working day

What is an unsecured business loan?

  • An unsecured business loan is when a lender lets you borrow without asking you to commit any security. Many business loans are secured on commercial assets, personal assets or with a personal guarantee from a business owner.
  • Unsecured business loans break free from the bureaucracy and inflexibility imposed by the need to give security. An unsecured loan can be arranged quicker and allows a business to move ahead faster. All Spotcap loans are unsecured.

How does an unsecured business loan work?

Spotcap loans are issued in the form of a business line of credit. Below is an example of how an unsecured business loan can work. It illustrates Spotcap’s approach, which is focused on simplicity and flexibility

1. APPROVAL

Once your business application has been approved we offer you a credit line. Your funds will be available within 24 hours

2. COMMITMENT PERIOD

Your credit line will be available for 1 to 3 months. During this period you may drawn down as much or as little as you need

3. DRAWING DOWN

Each drawdown becomes a separate business loan. Each loan has the same interest rate

4. REPAYMENT

Each loan is repaid monthly over an agreed course of time (between 1 and 15 months). After the first month, you can repay your loan early without penalty

5. RESCORING

When your credit line expires you have the option to request a rescore. This means that we reassess your information and determine if we can offer a longer repayment schedule or larger credit line

How can I start my business loan application?

You want to focus on your business. We understand. That’s why our applications can be completed in just 15 minutes.

Unsecured Business Loans Application
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Tell us about yourself and your business

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Receive your decision within one working day

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Accept your offer and receive funds

Why do we offer unsecured business loans?

Spotcap has a unique risk assessment and credit scoring system based on our proprietary algorithm and backed by our expert underwriters. Our system studies your current business performance, using data taken from standard financial reports.

Using this data, we determine the level of risk associated with lending to your business, allowing us to make offers of unsecured business loans. Our unsecured loans help businesses across a range of industries and can be used for any purpose.

How can an unsecured loan benefit my business?

  • Manage your operating cash flow

  • Increase your sales by offering new products

  • Invest in your new equipment

  • Refinance existing loans

Payment calculator

  • Amount
    £ 100,000
  • Time
    12 months

£9,340

Monthly Repayment

For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

Monthly Repayment

£13,752

  • Amount
    £ 150,000
  • Time
    12 months
For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

Understanding unsecured business loans

Information about the unsecured lending you need to know

 Unsecured business loan vs. unsecured line of credit

An unsecured business loan and an unsecured line of credit are alternative funding options based solely on a business’s creditworthiness, history and financial condition. These types of financing don’t require any collateral or personal guarantees, making them an attractive solution for healthy small and medium sized businesses that don’t want to tie up valuable assets.

An unsecured business loan and an unsecured line of credit are the most common non-collateralised financing options available to businesses. Each have their individual pros and cons, depending on what a business requires.

Business loans

  • Business loans operate as term loans, meaning they provide a single amount of credit and need to be returned within a certain timeframe. Even if the borrower doesn’t use all of the funding, they are obligated to repay the full amount with interest.
  • Business loans are generally better solutions for long-term commitments (2+ years) when the borrower knows exactly how much additional financing is required and why. For example, if a restaurant owner wants to change location and needs funding to purchase property, a business loan is better suited to them.
  • If a business wishes to repay their loan earlier than pre-arranged, the closing costs can be substantial and need to be factored in.
  • When it comes to interest rates, business loans operate with fixed numbers and monthly repayments don’t fluctuate. While this makes it easier for businesses to plan ahead, it also means that their repayments can be higher in the long run compared to other financing options.

Business lines of credit

  • Business lines of credit give a borrower more flexible access to funding. A lender agrees on a maximum amount of credit available to a business (e.g. $100k). From this, a borrower can withdraw as much or as little as they like, according to their business needs. This process is known as ‘drawing down’. A credit line is sometimes referred to as a safety net to cover a shortage of working capital.
  • Obtaining a line of credit is more useful for shorter timeframes of up to 12 months – for instance, when businesses are experiencing spikes in growth or demand and would like to have available funds for unforeseen expenses.
  • A business line of credit can sometimes be paid earlier than agreed without incurring additional fees.
  • With a business line of credit repayment amounts vary month by month. Businesses pay interest on the amount of credit that’s outstanding. Once that’s paid back, the smaller the monthly payments become.

Summary

A business loan is a financial solution better suited for situations where a large long-term investment is required and the necessary expenses can be predicted.

A business line of credit is a more suitable product for businesses that need more working capital. It helps to manage spikes in demand and cover unexpected costs in a more short-term capacity.