Unsecured Business Loans in Ireland: What You Need to Know

A secured business loan is backed by an asset, such as property or equipment, that the lender can claim if the loan is not repaid. An unsecured business loan is not tied to a specific asset. The lender decides mainly on the strength of the business: its trading history, cash flow and accounts.

• Many small businesses do not own property or large assets to offer as security
• There is no valuation of assets, so the process is usually quicker
• The business keeps its assets free for other uses

Unsecured does not always mean no commitment beyond the company. Lenders often ask company directors to give a personal guarantee, which means a director agrees to repay the loan if the company cannot.

Before you sign one, make sure you understand how much it covers and when it could be called on. If in doubt, get independent advice.

Without an asset to rely on, lenders look closely at whether the business can afford the repayments:

• Filed accounts for the last two years
• Recent bank statements or an Open Banking connection
• Existing borrowing and repayment history
• Up-to-date tax affairs

Our guide to business loan documents in Ireland covers each of these.

Because the lender carries more risk without security, unsecured loans can cost more than secured ones, and loan sizes are usually linked to the turnover and cash flow of the business. Compare the full cost, including any fees, across a few lenders before you decide.

Flurish lends to Irish limited companies from €15,000 to €250,000, over 3 to 48 months, with no upfront fees and a decision within 24 hours. Talk to our team about what your business needs and what any offer involves.

Read more about our business loans in Ireland or apply online.