Start your own business with a start-up business loan.
We are affiliated with The Start Up Loans Company who provide access to government-backed funding for businesses and free business support services. This provides an alternative to a traditional business loan or can be used to compliement other forms of funding and finance like invoice factoring and traditional business loans. The Start-Up Loans company is a subsidiary of the British Business Bank.
Free Access to Advice & Support
- Access advice and support to prepare your Business Plan and Cash Flow Forecasts.
- Access a range of templates, guides & business management tools.
- Access 12 months of free mentoring for loan recipients.
- Exclusive business offers and business news.
Access fixed Low-Interest Unsecured Personal Loans
- Borrow up to £25,000.00
- 1-5 Year Loan Repayment Term
- No set up or early repayment fees
- Fixed interest rate of just 6%
Once registered, you will be allocated an experienced Business Advisor who will help you create a Business Plan, Cash-Flow Forecast and a Survival Forecast for privately incurred costs outside of the business to submit along with your loan application. When approved, you will be introduced to a personal business mentor who will provide 12months of free business mentoring and support.
Is a Start Up Business loan some sort of a grant?
No. Grants are non-repayable funds often provided by private individuals, institution and/or organisation for specific purposes only. Start Up Business Loans are an unsecured personal loan for business purposes to help your business succeed and will be repayable over an agreed term, typically between 12 months to 60 months or one to five years respectively.
Will there be any fees due to set up the loan?
For Business Start-Up Loans, there are no fees required for applying, receiving and setting up a loan. There are no other fees due at any point during and after the application is completed and certainly no charge for the ongoing business advice and support you will receive from our mentors. Apart from the monthly loan repayment amount then there are no hidden fees or other repayments you will be asked for.
What factors are considered for loan application reviews?
There are a number of areas that your business advisors will assess when they consider your application for a Start-Up Loan. They will focus on: Whether your business idea has merit and is a viable business idea, they will also focus on your credit worthiness which will take into account your credit rating and also whether you can afford loan repayments.
Does it have merit
Is it viable?
A determining factor on whether you are able to secure a start-up loan will be that your business is capable of generating enough money to help cover your monthly loan repayments.
To help The Start-Up Loans Company make the correct decision, your business plan will need to show that there is enough of a demand for your products/services and that the milestones and goals contained within your business plan are achievable.
Try not to worry too much at this stage, what is important is that you have a plan and that you are going to stick to it and remember, your Business Advisor will be there to help by offering support and guidance along the way.
The Start-Up Loans Company will conduct a thorough credit check against your name that reviews your historic financial behaviour. It is important to mention that individuals with poor credit history should not be discouraged from applying for a Business Start-Up business loan. Credit checks are performed only as part of their commitment to being a responsible lender and that any applicant doesn’t take on too much as this could harm the individual and they are careful to make sure they do what is in your best interest.
Once a Start-Up Loan has been awarded, it is important to remember that you will have to repay the loan in full, as this is a personal loan, and not a grant. Even if your business plan changes or evolves, then you will still be required to pay off the loan. Remember you will be responsible for the loan repayments that will include a fixed interest rate of 6% per-annum over the agreed term but remember also, that a Start-Up Loan is unsecured so you do not have to offer securities (goods that can be recovered if you default) as you would have to with asset finance solutions.
Are there any rules how I spend the funds?
Remember Start-Up Loans exist to help you succeed and so they should be spent on direct business expenses including, but not limited to things like stock, business equipment like computers and printers, advertising material and maybe business websites also.
It will be important that what you intend to spend your business loan on is listed within your business plan and cash flow forecast and then you need to explain how this expenditure will help grow your business.
A number of activities do exist that are excluded from what a Start-Up Loan can be spent on, and these include paying off existing debts, paying for professional or educational training courses or making investments in anything other than your own business as described in your business plan.
Can I select my own repayment term?
Absolutely, you can select a loan repayment terms between one and five years. You will be responsible for the loan and the accrued interest payments also.
How many Start Up Loans can I apply for under the same scheme?
You can only apply for one business start-up loan, even if you own more than one business so make sure you consider which business is likely to present the highest profit for you. If you secure a loan for one business and then later down the line need access to more funding, then there is nothing stopping you applying for a second loan to help your business grow.
At that point, should it occur, you will need to re-apply for a loan and you will have had to have a minimum of six months complete loan repayments in place to be eligible to apply. It is important to mention that your total loan balance owed can never exceed more than £25,000.
- Your business is based in the UK.
- You have the right to work in the UK.
- Your business class and intended use of the loan have to be eligible under the terms of the scheme.
- You must pass the required credit checks and be able to afford loan repayments.
- You’re a UK resident
- You’re 18 years old or over
- You’re starting a new business or have been trading for less than 24 months.
- You’re unable to secure finance from alternative sources.
Excluded Loan Purposes:
A Start-Up Loan must be used to fund genuine business activities and not any of the following;
- Education programmes
- Debt repayment.
- Investment opportunities not forming part of an ongoing, sustainable business.
You are unable to apply if you're involved in:
- Chemical Manufacture
- Illegal activities
- Banking and money transfer services
- Private investigators that do not hold the correct licences.
- Agents for third-parties where a third-party earns the majority of the revue earned or where you will only receive a commission or introducers fee*
*Do not confuse this with Franchise companies as Franchises are eligible to apply for a loan. This list may change and evolve over time and our business partners reserve the right to update and/or amend this list at their discretion.
Purchasing Existing Businesses
Providing the business you intend to purchase has not been previously owned by you, then you can apply for a Start-Up Loan even if it has been trading for more than two years under different ownership. The key thing here is that as long as the business is new to you, then you can still apply.
On occasions it might be that your business growth plans need more than the £25,000 personal loan limit. On occasions like these, up to four individuals can apply with a combined lending limit not exceeding £100,000.00. Each partner in the business will need to apply, and providing they are eligible, the loan will be approved.
You can apply for a loan even if you are a franchise so long as you meet the criteria described on this page. If your loan application is successful, your will be paired up with your own professional business mentor for 12 months to help support you on your business journey.