Ask The Experts > Unsecured Business Loan
An unsecured loan is a loan that is not backed by collateral such as property, whether it is land, an investment property, the family home or a commercial property.
By definition, a loan that is secured by property is a secured loan.
As an unsecured business loan is not backed by collateral, it represents greater risk to the lender and the rate is typically higher to compensate the lender for the greater risk being assumed.
One of the objectives of business owners and directors that Business Money comes across is that they desire the company's finance facilities not to be tied to their personal assets.
Business owners believe quite rightly that the business should stand on its own and be self-funding, that is they are after unsecured business finance. The advantage of releasing personal assets for business owners so that these assets can either be asset protected or put to other investment uses, far often outweighs any slight additional increase in cost.
In fact, in many cases we have been able to achieve very competitive rates for clients as if their business loan was a secured one.
At Business Money we share the belief that a business loan should be an unsecured business loan and have therefore sort out many lenders and finance products that do not rely on the personal assets of the directors or business owners.
Contact Business Money today if you are interested in unsecured business finance and releasing the family home from your business borrowings.
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