Are there specific requirements for an unsecured loan?
Every bank or other lender has their own requirements and criteria. Typically, this includes some evidence of trading history, providing access to your bank statements and providing evidence of future business plans.
Is an unsecured loan available to a start-up?
Most lenders want the confidence that your business is viable. This means they are looking for some trading history, typically of at least six months.
If the loan is unsecured, how can the lender be sure they’ll get their money back?
Most unsecured business loans are underwritten with a personal guarantee from a director of the business. That is, the director commits to take on responsibility for repaying the debt should the business fail to do so.
How is an unsecured loan usually repaid?
You will typically repay an unsecured business loan in equal monthly instalments, usually spread over two to six years. These repayments include both the capital sum and the interest charged. Because the repayments are the same each month, your cash flow planning is made easier.
Would your business benefit from the flexibility and convenience of an unsecured business loan?
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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The first steps towards the funding your business deserves
Disclaimer: JD Capital Finance (Registered office -First Floor, Steeple House, Church Lane, Chelmsford, England, CM1 1NH, Registered Number 10128297) helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.