Secured vs Unsecured Business Loans | Funding Circle

Secured vs unsecured business loans

We offer both secured and unsecured options to help you take your business further. Find out more and apply in minutes today.

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Funding Circle has worked with the British Business Bank since 2013, supporting thousands of businesses as one of the largest providers of Government-backed loans including through the Growth Guarantee Scheme.

What’s the difference between secured and unsecured business loans?

Unsecured loans

Unsecured loans allow you to borrow without giving security on any business assets, such as property or equipment. They’re a quick and easy way to get an affordable cash injection for your business.

Secured loans

Secured loans allow you to borrow without personal liability from the directors or shareholders, as you can use business assets as collateral. If your business can’t pay back the loan in full, the proceeds from the sale of assets can be used to pay off the outstanding amount.

Does Funding Circle offer secured loans?

We offer both secured and unsecured loans, to give you the choice to do what suits your business most.

All you have to do is apply for a Funding Circle loan as normal, and if you’re eligible for this option we’ll make you multiple offers, so you can select the option that works best for you.

What we offer

At Funding Circle we offer a variety of products to suit different needs, from business loans to short term finance.

Funding Circle business loans

Borrow from £10,000 to £750,000 with fixed rates and no early settlement fees. Secured and unsecured options are available depending on eligibility.

Asset finance

Borrow up to £5 million to fund new equipment, vehicles, machinery or other assets through our panel of expert partners.

FlexiPay

Spread the cost of business bills, invoices and more with a line of credit of £1,000 to £250,000. Pay by card or cash transfer, then choose to repay over 1, 3, 6, 9 or 12 months.

Funding Circle Cashback

Get paid back every time you spend with our Cashback business credit card. Earn up to £2,000 with 2% cashback for the first 6 months, plus 1% uncapped cashback on everything you spend after that.

Check your eligibility in 30 seconds with our online form without affecting your credit score.

Applying is quick and easy

  1. Check if you qualify in 30 seconds

See if you’re eligible without affecting your credit score

  1. Apply online in 7 minutes

Complete our simple form with your details, and we’ll only ask for supporting documents if we need them.

  1. Get approved in as little as 1 hour

If approved, you’ll receive no-obligation offer with your personalised rate.

  1. Get your funds in a couple of days

Once you accept your offer we'll deposit the money into your account - typically within 48 hours.

Frequently asked questions

What is a secured loan at Funding Circle?

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When applying for term loan finance, a lender will typically seek some security or additional liability to ensure commitment from the borrower to repay the funds over the agreed term.

Depending on eligibility, we can offer our customers two choices: signing a personal guarantee, where directors/shareholders share personal liability for the loan with the business (unsecured loan), or signing a fixed and floating charge over business assets (secured loan).

How long does the process take if I choose the secured option?

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It’s just as quick as our standard term loan – with decisions in as little as 1 hour and funds typically paid within 48 hours once approved.

Can I get a secured loan if my business has already taken out secured lending?

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Yes! As part of your credit assessment, we’ll look at a range of factors to determine what we can offer you, including previous lending history. Having existing charges over business assets will not exclude you from receiving a dual secured/unsecured offer from Funding Circle.

How long can I borrow for?

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Whichever option you choose, terms are available from 6 months to 6 years. There’s also no fees for full early repayment, so you can settle early at no extra cost.

Am I eligible for a business loan?

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To be eligible to apply for a loan with us, you need to: