Interest rates on an unsecured loan

[russy01]

Morning,

£1,000,000 over a fixed 10yr term.

Several years back when chatting to the bank, I was offered 2% over base (secured against a business property).

Is this still the case?

Any idea what an unsecured rate would be? (assuming confident in financials and growth plans)

Thanks

[OutInTheShed]

Sounds like the 10% in the P2P adverts?

[TownIdiot]

OutInTheShed said:

Sounds like the 10% in the P2P adverts?

Unsecured?

Would love to know who's doing this sort of amount unsecured.

[SJfW]

TownIdiot said:

Unsecured?

Would love to know who's doing this sort of amount unsecured.

+1

If you do get something sorted OP, would be fascinating to know the numbers involved.

[Panamax]

russy01 said:

Any idea what an unsecured rate would be? (assuming confident in financials and growth plans)

If the financials and growth plans stack up for the real world, why would the loan be unsecured?

One of the huge issues for an unsecured lender is your ability to enter further loans on a secured basis, pushing them right to the bottom of the creditor priorities.

If you've already got secured loans in place, unsecured cash may be impossible to obtain at any price.

[russy01]

I have a long very profitable trading history with said bank - having borrowed and paid off (early) other loans of 7 figures, so I have been offered unsecured loans nearly at that figure in the 3-4% range.

What I am trying to get at here - is not borrowing unsecured from the bank, but trying to arrive at a sensible interest rate with an independent entity - who knows me and the business very well.

i.e I can borrow secured through the bank at something in the 2% over base ball park. But, if I was to borrow said amount from a friend/associate (with no debenture) what sort of rate would you suggest?

What do you want to do? Borrow at 2% over base and give all the interest to the bank OR borrow at 3% over and the interest goes to a mate who could help me in other ways.

Clearly a lot of money at stake - but its something I am very loosely considering.

[LooneyTunes]

Nobody is going to be able to sensibly answer this question from the information provided.

So much depends on the specifics. £1m could be bugger all in the context of the specific business and/or your personal standing. Alternatively it could represent an insane level of risk.

The only way you'll know what works for your friend is to talk it through with them.

[JQ]

LooneyTunes said:

The only way you'll know what works for your friend is to talk it through with them.

Or speak with a finance broker and get some real world quotes.

[russy01]

JQ said:

LooneyTunes said:

The only way you'll know what works for your friend is to talk it through with them.

Or speak with a finance broker and get some real world quotes.

Yea I completely agree and wasnt sure about the thread, but I just wanted to hear opinions and if anybody was in a similar position.

[AndyC_123]

I've fairly recently done just over £2m and £6.5m at 1.75% over base - original quotes we just over 2%.

[TownIdiot]

AndyC_123 said:

I've fairly recently done just over £2m and £6.5m at 1.75% over base - original quotes we just over 2%.

Unsecured?

[Panamax]

russy01 said:

I have a long very profitable trading history with said bank - having borrowed and paid off (early) other loans of 7 figures, so I have been offered unsecured loans nearly at that figure in the 3-4% range.

That sounds a pretty good offer to me.

[AndyC_123]

TownIdiot said:

AndyC_123 said:

I've fairly recently done just over £2m and £6.5m at 1.75% over base - original quotes we just over 2%.

Unsecured?

Sorry missed that bit, secured against the asset(s) it was funding.