Is an unsecured business loan without a guarantor possible?
Possible, but only for an operating business and in limited amounts: banks usually lend 5,000–30,000 AZN unsecured to an entrepreneur with 6–12 months of account turnover and a tax record. Larger amounts require collateral, a guarantor or a guarantee from the Credit Guarantee Fund. The rate on unsecured loans is 3–6 points higher.
An unsecured business loan is the riskiest product for a bank, so the decision rests almost entirely on turnover: if the bank sees money flowing through your account, it treats that as "security" instead of collateral. Concentrating your turnover in one bank is therefore the strongest argument. A state guarantee is the formal mechanism that replaces collateral. Below we explain which amount is realistic and how to raise your odds.
What you need
- 1 Registered activity (tax ID) for at least 6–12 months
- 2 Bank account turnover (ideally at the same bank) and tax payments
- 3 The entrepreneur's personal credit history is clean
- 4 Amount: usually 1–3 times monthly turnover, up to 30,000 AZN
Bank offers that fit this case
| Bank | Loan | Rate | Term | |
|---|---|---|---|---|
Yelo Bank
|
Yelo Bank Biznes Kredit | 8.9% | 59 mo. | Details |
Unibank
|
UniBank Biznes Kredit | 9% | 60 mo. | Details |
Rabitəbank
|
Rabitəbank Biznes Kredit | 10.5% | 48 mo. | Details |
.jpeg){kind=small}
Kapital Bank
|
Kapital Bank Biznes Kredit | 12% | 60 mo. | Details |
ABB Bank
|
ABB Biznes Kredit | 15% | 48 mo. | Details |
Access bank
|
AccessBank Biznes Kredit | 18% | 48 mo. | Details |
Expressbank
|
Expressbank Biznes Kredit | 15% | 48 mo. | Details |
Sample calculation
Estimated figures for 15 000 AZN over 24 months at ~8.9% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ Route POS-terminal and online payments to one bank's account; visible turnover replaces collateral.
- ✓ With a Credit Guarantee Fund guarantee the bank considers larger unsecured amounts; ask the bank about this mechanism.
- ✓ A working-capital credit line is more flexible than a lump-sum loan: interest is charged only on the amount used.
- ✓ If you sell for cash, deposit it into the account; cash turnover does not exist for the bank.
Frequently asked questions
What is a Credit Guarantee Fund guarantee?
The state fund guarantees part of the bank's loan (usually 50–60%) and the bank reduces its collateral requirement. You apply through the bank; the fund charges a small fee.
Can a newly registered entrepreneur get an unsecured loan?
With under 6 months of activity, practically no. A personal consumer loan or a small guaranteed loan is the realistic alternative.
What is the rate on an unsecured business loan?
Usually 14–22% a year, versus 10–15% for secured business loans. State subsidised loans are around 5%, but require collateral or a guarantee.
Related questions
Useful links
SmartService · smartservice.az
Boiler, AC and washing machine repair — call a technician to your door
Appliance repair, sales and spare parts since 2017. Fast service across Baku.
Call a technician