Unsecured Business Loans for Property Developers
Property developers typically use secured finance (bridging, development loans) for acquisitions and builds. But there are times when unsecured funding is more appropriate — covering pre-development costs, feasibility studies, planning applications, surveying, and marketing before a secured facility is in place.
Unsecured loans can also fund the gap between your own capital and the minimum equity contribution required by a development lender. This helps maximise your buying power without giving up project equity to a JV partner.
Key Benefits
- Fund planning applications and feasibility work pre-acquisition
- Cover equity contributions for development finance
- No charge on your property portfolio
- Fast access to working capital between projects
Frequently Asked Questions
Why use an unsecured loan instead of bridging?
Unsecured loans are useful for costs that don't involve property acquisition — planning fees, surveys, marketing, and working capital. They avoid the arrangement fees and legal costs associated with secured lending.
Can I use it as a deposit for a development loan?
Some development lenders accept borrowed deposits if you can demonstrate serviceability. However, many require the equity contribution to come from your own funds. Check with the development lender first.
What trading history do I need?
Typically 2+ years of filed accounts showing profitability. Lenders will also consider your personal credit history and any other business interests.
Are the rates higher than secured lending?
Yes. Unsecured business loan rates are typically 6-20% APR depending on the amount, term, and business strength. This compares to 0.39-1.5% per month for bridging (which works out at a similar or higher annualised rate for short-term use).
Related Funding Options
Unsecured Business Loans UK
Business loans from £1k to £500k with no property security required. Fast decisions, flexible terms. Compare unsecured loans for UK businesses.
Bridging Loans for Property Developers
Fast bridging finance for UK property developers. Fund auction purchases, refurbishments, and chain breaks. Completion in days, not months.
Development Finance for Property Developers
Ground-up development finance for UK residential and commercial projects. Fund land acquisition, construction, and completion.
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Learn About Our Broker NetworkCoreFi 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.