Unsecured business finance has become one of the most important funding routes for Irish SMEs, particularly for businesses that can’t or don’t want to put property or equipment on the line. The Department of Finance’s 2025 SME Credit Demand Survey found that 38% of Irish businesses applying for finance were still asked to provide collateral, averaging 54% of the loan amount, which is exactly the barrier unsecured business loans are designed to remove. That growth in demand has, unfortunately, been matched by inconsistent standards among providers. Not every lender offering unsecured finance in Ireland deserves the trust that comes with a business signing on to their products.

Understanding Unsecured Business Finance

An unsecured business loan is funding that isn’t tied to a specific asset. The lender has no claim on a building, equipment, or stock it can seize if the business can’t repay. That’s what makes it quicker to access than a secured bank facility, which matters most when working capital is needed fast.

The unsecured market runs from fixed-term loans to revenue-based products like a merchant cash advance. A  Merchant Cash Advance works differently to a standard loan: instead of fixed monthly repayments, a small percentage of daily card takings is collected until the agreed total is cleared. 

Check 1: Verify Who You’re Actually Dealing With

The first check is simple and takes a few minutes: does the lender actually exist, and are they who they say they are? Start with the Companies Registration Office (CRO). Check the legal name, registered office, filing history, and current and former directors.

Check 2: Transparency on Cost and Terms

Unsecured finance, particularly revenue-based products, is typically presented with a clear, all-inclusive cost agreed upfront before funding is released. That means the total cost of the facility is known from the start, with no compounding interest and no fixed monthly repayment structure to interpret.

A simple test: can the total cost be understood in advance, without needing to interpret fluctuating rates or a complex repayment schedule? If not, that’s worth pressing on before anything is signed.

Check 3: Responsible Underwriting, Even When It’s Unsecured

Reputable unsecured lenders look beyond credit scores, examining how the business actually trades and using cash flow or card sales data alongside a soft credit check. This allows for faster decisions and can make funding accessible where a traditional bank application wouldn’t get past the first stage.

That said, a trustworthy lender still declines when a deal doesn’t fit. A “we approve almost everyone” claim shouldn’t be read as generosity. It’s a warning sign of weak underwriting, because lenders who fund everyone end up funding deals that shouldn’t have been funded, and the borrower pays for it. 365 Finance Ireland’s own approval rate sits around 90%, reflecting a process built to say yes to strong trading businesses, not every applicant.

Check 4: What Happens After the Money Lands

Post-funding conduct is where trustworthy lenders separate themselves from the rest. A lender worth trusting assigns a named point of contact from day one, publishes a clear complaints procedure, and runs a documented renewal process rather than going quiet once funds are released.

Renewal and retention rates are the clearest indicator of all. Businesses return to lenders that treated them well the first time.

FAQs

Should a 100% approval rate worry me?

Yes. It usually signals weak underwriting rather than a borrower-friendly lender, and often leads to businesses being funded when they shouldn’t be.

What’s the quickest way to check if a lender is legitimate?

A CRO search takes a few minutes and shows the legal name, registered office, and director history, an easy first filter.

A trustworthy unsecured lender should hold up against every one of these checks. See how 365 Finance’s approach to unsecured funding compares.