Business Start Up Loans

Financing a new Start-Up business is one of the most crucial aspects of helping a new venture to succeed. Obtaining finance for a new business can be a difficult process. For example, borrowing money from a mainstream bank may not be an option or only possible with security conditions such as a personal guarantee. 

There is a government-backed scheme known as the Start Up Loan scheme that may be able to help. This scheme offers personal loans to individuals looking to start or grow a business in the UK. Applicants that are accepted are also paired with a business mentor for 12 months. This loan is unsecured, meaning there’s no need to put forward any assets or guarantors to support an application.

Business owners or partners in a business can individually apply to borrow from £500 -  £25,000 each, with a maximum of £100,000 available per business. The average loan amount through the scheme is in the region of £7,200. There is a fixed interest rate of 6% per annum with the option of a 1 to 5 year loan repayment term. There’s no application fee and no early repayment fee.

To apply for the loan all of the following must apply:

• you live in the UK

• you’re 18 or over

• you have (or plan to start) a UK-based business that’s been fully trading for less than 36 months.