What is an Unsecured Loan?
An unsecured loan is a way of borrowing without securing against a property or assets. Unsecured loans are usually used for borrowing smaller amounts.
How you can use an Unsecured Loan
There is no restriction on the use of the funds. However, most lenders like to record what the purpose is, to better understand how their clients, use their facilities. Popular reasons include:
- Raising working capital
- Covering marketing expenses
- Funding expansion, including the purchase of additional property
- Payment of VAT bills/tax bills
- Covering stock costs
- Covering costs of staff training
- Funding the purchase, refurbishment or upgrade of equipment/assets
- Restructuring of current debt
