Unsecured Business Loans for Manufacturers
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: £10k - £300k over 1 - 5 years. Most manufacturers we speak to are not short of orders, they are short of the cash to fulfil them.
Most manufacturers we speak to are not short of orders, they are short of the cash to fulfil them. An unsecured business loan covers the gap between winning a contract and getting paid on it, without a legal charge over your premises or equipment.
The product is straightforward. A lender advances a lump sum based on your trading history and financial position, and you repay over one to five years at a fixed monthly amount. No asset valuation, no debenture over your plant, no waiting for a surveyor. The lender who says yes to a manufacturing business here is usually a fintech or challenger bank that underwrites on cashflow rather than collateral, not your high-street relationship manager.
Where this fits: funding a raw material order when a new customer wants delivery before terms are established; covering recruitment costs when you need fabricators on the floor before the next production run starts; paying for quality certification such as ISO or CE marking that a contract win depends on; bridging the period before invoice finance is live. It does not replace asset finance for machinery, where the asset itself secures a cheaper rate. And no broker can tell you the rate before the lender sees your numbers; that is decided on your credit file, your last two years of accounts, and your current debt stack.
Key Benefits
- Lenders here underwrite on cashflow, so a strong order book carries more weight than property equity
- No charge over your factory, plant, or equipment; those assets stay unencumbered for future secured borrowing
- Funds can reach your account quickly, which matters when a supplier is holding material allocation for a new contract
- Fixed monthly repayments make forward cash flow planning straightforward, unlike a revolving facility that fluctuates
Frequently Asked Questions
Is it better to use asset finance or an unsecured loan?
For equipment and machinery purchases, asset finance is almost always cheaper. The asset secures the lending, so the lender takes less risk and prices accordingly. Unsecured loans earn their place for general working capital, hiring, certification costs, and marketing spend, things that do not sit neatly on a balance sheet as a depreciating asset.
Can a manufacturing startup get an unsecured loan?
Rarely on the open market. Most unsecured lenders want at least two years of filed accounts and a demonstrable revenue track. If you are under two years old, Start Up Loans (government-backed, up to £25k per individual) and asset finance for specific equipment are the more realistic routes. Note that Start Up Loans are personal regulated borrowing, so we would point you to apply directly rather than broker them.
What if I have seasonal cash flow?
Unsecured loans carry fixed monthly repayments regardless of your revenue cycle. If your manufacturing business has a heavy seasonal pattern, a revolving credit facility or invoice finance will flex with your trading better than a term loan with a fixed schedule.
Can I get multiple unsecured loans?
Yes, lenders can and do lend alongside existing facilities, but every lender at credit stage will look at your total debt service burden. Stack too many and the affordability calculation breaks down, which either kills the application or pushes the rate up. We will tell you if the numbers look stretched before we submit.
Work out your numbers
Related Funding Options
Unsecured Business Loans UK: £1k to £500k, No Property Security
Unsecured business loans from £1k to £500k for UK limited companies. No charge on your property. We broker these deals and can tell you which lenders are open to your sector & turnover.
Invoice Finance for Manufacturers | Release Cash from Your Sales Ledger
UK manufacturers waiting 60-90 days for payment can release 80-90% of invoice value within 24 hours. We place invoice finance for manufacturing businesses across a range of facility sizes.
Asset Finance for Manufacturers
Finance CNC machines, production lines, & industrial equipment for UK manufacturers. We place asset finance deals from £25k to £5M, hire purchase or finance lease.
Business loans by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.