Lenders in this economic climate like most prefer safe deals and guaranteed income. They prefer to lend against  items that are in high demand. Examples of these can be;  vehicles, construction equipment and not specialist equipment/machinery which are not in high demand..

Given the state of the construction industry which is currently not performing  as it should be, the industry still needs these items, meaning that there will be a constant and consistent demand. This inevitably results in a consistent flow of income generated in just one industry as a given example. Specialist asset finance lenders will also be versed in other industries that will deal with leases of items that are less common..

However the difficulty in  leasing can come in areas that are too exclusive outside mainstream industries or asset finance.  

That said, asset finance  is a good solid method of raising funds  for businesses including lending against existing owned kit..

Unsecured business loans in the current economic climate are generally not favourably received. Lenders prefer the security of secured business loans in which lenders can loan. With unsecured loans, the Government has some measure of control with a few schemes instilled in banks such as a 75% guarantee of a loan with the bank making up the rest.

This scheme is not encouraged at most banks and the borrower might  need to give a personal guarantee also. Yet some institutions will allow unsecured business loans depending if the security has been exhausted previously. With that though comes much more expensive terms in which business owners will have to weigh up the advantages and disadvantages of a potential loan that comes bearing risk.

The risk comes with high interest rates because the lender needs to gain the funds at a larger rate than the borrower thus resulting in the lender adding the interest rates onto the loan. Yet the risk on insolvency is very high on the agenda with unsecured business loans and in the worst case scenarios that would mean debts may eventually become uncollectable with all parties losing out as a result.

 Much like secured business loans if played tactfully then there is some benefit to be had. Such is the risk with unsecured loans generally and the expensive rates that follows means it cannot always be a viable business plan.