Large unsecured business loans.
Borrow against a repayment case.
For established UK companies considering £200,000+ borrowing for growth, investment or a defined working-capital requirement. Assess what trading cash can repay, the total commitment and any personal guarantee before choosing a structure.
Discuss substantial unsecured borrowingNBS Funding is operated by NBS Finance. Commercial finance broker and introducer, not a lender. No client broker fee.
An unsecured business loan generally does not require a specific business asset as collateral at the outset. The lender still assesses the company’s ability to repay and may require a director or shareholder personal guarantee. The business remains liable for the debt.
What will repay the borrowing?
- Define the use
Separate a planned growth investment or temporary cash gap from an ongoing loss that borrowing would not resolve.
- Evidence trading cash
Reconcile profit to cash after tax, working capital, existing repayments and essential investment.
- Test the downside
Model delayed receipts, reduced margin or a slower investment return before choosing the instalment.
- Check the obligations
Read guarantees, covenants, default provisions, information requirements and restrictions on further debt.
A substantial unsecured requirement needs more than a profitable set of filed accounts. The timing of cash receipts, current bank position, other lenders’ commitments and the reason for the amount all matter. Reliable management information helps explain a growing business whose latest filed accounts no longer show its current position.
No asset charge does not mean no personal exposure
| Question | What it means for the decision |
|---|---|
| Specific business-asset security | An unsecured structure generally starts without charging a particular asset. Check the actual documents, including any right to request security later. |
| Personal guarantee | A director or shareholder may become personally liable within the guarantee’s terms if the business does not pay. Confirm its cap, duration, continuing obligations and release. |
| Company liability | The company owes the borrowing, interest and agreed charges. Unsecured does not mean repayment is optional or that a lender has no recovery rights. |
| Restrictions and default | Check covenants, further-borrowing restrictions and what happens after a missed payment, breach or change of control. |
Funding Circle and iwoca publicly describe unsecured products that require a personal guarantee in relevant company cases. Their policies are examples, not a guarantee requirement for every lender or evidence of NBS access to a particular product. Read the proposed guarantee with an appropriately qualified solicitor: personal assets can be exposed if it is called.
Compare net cash and the repayment burden
- Gross borrowing
- £300,000
- Assumed fee deducted
- − £6,000
- Net cash received
- £294,000
Assume 60 monthly repayments of £6,250, no balloon, and the £6,000 fee deducted as above. Scheduled repayments total £375,000: £75,000 interest within the payments plus the £6,000 deducted fee gives £81,000 financing cost. Other charges and early settlement are excluded. This is not a quote, a market rate, an APR or a funding commitment.
| Assumed schedule | Monthly repayment | Scheduled repayments | Cost including deducted fee |
|---|---|---|---|
| 36 months | £10,000 | £360,000 | £66,000 |
| 60 months | £6,250 | £375,000 | £81,000 |
The longer illustration reduces the monthly payment by £3,750 but adds £15,000 to total financing cost. Both deliver £294,000 net cash under these assumptions. Ask for the real schedule, interest basis, fees, total payable, payment dates and early-settlement calculation; a headline monthly payment alone does not make the comparison.
When should you compare a different structure?
| Situation | Relevant comparison |
|---|---|
| Equipment or fleet investment | Asset finance may match the productive asset and ownership objective; compare deposits, VAT timing, repayment profile and end position. |
| A continuing B2B debtor-book gap | Invoice finance may follow eligible receivables rather than a fixed loan schedule. Compare actual headroom, costs and operational obligations. |
| Assets available and a sustainable repayment plan | A secured business loan is a separate assessment of repayment and collateral; it is not automatically cheaper or available. |
| Replacing existing debt | Business loan refinancing requires settlement figures, exit costs and a like-for-like comparison of the remaining commitment. |
Unsecured borrowing may be relevant where a company does not want to charge a specific asset, but the lender’s appetite, amount and term still depend on the whole case. It should not be treated as a way to bypass weak cash generation or an existing lender’s conditions.
Prepare a substantial borrowing brief
- The amount, intended use, investment timetable and required net cash.
- Recent filed accounts, current management accounts and relevant bank information.
- Cash-flow forecast showing base and downside repayment capacity.
- Existing loans, repayments, overdrafts, security and any current guarantees.
- Trading history, customer concentration, unusual transactions and explanations for material changes.
- Proposed guarantors and any restrictions in existing finance agreements.
The initial enquiry does not require these documents. Start with the company, approximate amount, purpose and timing; agree appropriate evidence and sharing arrangements next. Provider document requirements vary. An established company with sound information may still receive a different amount or no offer.
Questions before proceeding
Can an unsecured business loan still require a personal guarantee?
Yes. No charge over a particular business asset is different from a personal promise to repay. Check the guarantee wording, limits and release conditions rather than assuming directors have no exposure.
Does £200k+ mean NBS can secure that amount without collateral?
No. It describes our marketing focus. A lender determines the amount, terms and any guarantee or security requirements after assessing the case. No approval or particular limit is promised.
Is unsecured borrowing always faster or more expensive?
Neither should be assumed for your case. Underwriting, information and legal requirements affect timing; compare the actual interest, charges, term and obligations. There is no speed or rate promise on this page.
Can this be used for refinancing?
Potentially, subject to provider policy and affordability. Obtain accurate settlement figures and compare total remaining cost, exit terms and repayment dates before replacing existing borrowing.
Provider material describes that provider’s product. It does not establish an NBS relationship, current case acceptance or an offer. Examples on this page are hypothetical. Prepared by NBS Funding, operated by Isaac Powell trading as NBS Finance.
Bring the requirement.
Understand the next step.
No financial documents needed to begin. Provider assessment and terms apply.