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  • Are small business loans secured or unsecured?

To guarantee repayment, some finance providers will request they secure the finance on something you already own, whether it’s equipment, assets, or property. If you’re unable to repay for whatever reason, they would be able to take the secured property as payment.

Alternatively, a secured business loan might be secured against the company director themselves, so if the business can’t repay, they become responsible for the payments.

The benefits of an unsecured business loan

From a business owner’s perspective, a secured loan can be a risky agreement to make. Instead, an unsecured loan is based on your creditworthiness. This removes the need for collateral and reduces the risk for you.

Unsecured finance can be particularly useful for small businesses and startups. It gives them room to grow while protecting any assets they have.

Ideal finance for startups and small businesses:

  • Pay for essential upgrades
  • Tide your business over if there are unexpected expenses
  • Protect your assets
  • Keep growing and reduce the risk

Capify’s unsecured Alternative Business Loan

The Alternative Business Loan is ideal for Limited Companies, allowing you to raise between 75% of your average monthly turnover – between £3,500 and £500,000.

Repayment is manageable and predictable. A small regular percentage will be taken from your business bank account until the finance is repaid.

Alternative finance since 2008

Capify has been helping businesses source finance for 10 years. We’re also a founding member of The Association of Alternative Business Finance, championing alternative finance options for small businesses throughout the UK.

Your business can raise unsecured finance for essential upgrades, refurbishment, and development. Find out how much you could raise with our quick quote tool.

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