2 min read
Owning premises is not the point
For an unsecured business loan, a lender assesses your company's trading, cash flow and affordability — not whether you own the building you work from. Plenty of profitable companies rent, and that has no bearing on a standard facility. What you own matters only if you want to secure a loan on property.
When the lease comes up
On some deals a lender may glance at your lease — its length and terms — because a business tied to a short or precarious lease carries a little more risk. It is rarely decisive. What carries the case is the strength of your trading, exactly as it would for a company that owns its premises.
Security without property
If a lender wants security but you own no premises, alternatives exist: a personal guarantee, a charge over other company assets, or invoice finance secured on your debtor book. Confirm affordability on the affordability calculator and enquire for a business loan as normal.
Frequently asked questions
Do I need to own property to get a business loan?
No — most unsecured business loans have nothing to do with property ownership. Lenders assess your trading and cash flow. Property only matters if you are seeking a facility specifically secured on it.
Will a short lease affect my application?
It can be a minor factor on some deals, as a very short or insecure lease adds a little risk, but it is rarely decisive. Strong trading outweighs it. Be ready to mention lease length if asked.
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