Start-up business loans – helping you on your way to greatness

In this article:

Business start up loans - your options

Start up business loans to drive growth

Who can get start up business loans?

Start up loans FAQs

We love working with businesses that are starting out on their journey. Providing you’ve been operating for at least four months, we can look at providing you with the money you need to bring your ideas and dreams to life.

Although we’re not a start up loan company specifically, we have been providing small business start up loans for years and look forward to hearing your plans and helping you reach your potential.

Whether or not you regard your business as a start up, we’ve got a business loan that will suit your needs.

Whether you’re just starting to research small business start up loans, or know exactly what you need, we want to speak to you about your financing requirements. We offer two main types of start up loan, to make sure our loan terms suit you.

Our fixed rate start up loans are aimed at businesses that want to know exactly what their repayments will be each month, so there are no surprises. Our fixed rate start up loan customers tend to be looking for slightly longer-term loans to help them make significant investments or purchases. Here are our terms:

• Borrow between £5,000 and £100,000

• Repay over 6-18 months

• Rates start at just 2.5%

Our variable rate start-up loans offer a more flexible option to those looking to borrow cash to help them grow and realise their ambitions for their business. Whatever stage in your business lifecycle you’re at, you’re likely to need help with meeting operating costs at some point, and we can help. Here are the terms:

• Borrow between £5,000 and £100,000

• Repay over 1-6 months

• Rates start at just 2.5%

We provide start up business loans UK business owners use to make their ideas a reality. When you start a business, you want to see it grow, and grow fast. Without the right level of financing, this can become a frustrating process and many entrepreneurs never get to enjoy the achievements they deserve.

Our borrowers work alongside our lending team to secure finance that works for them. Our small business start up loans can be used for a range of purposes, such as:

• Buying stock

• Paying staff

• Covering rent and utility bills

• Expanding supply chain

• Investing in vehicles or machinery

• Boosting manufacturing capacity

• Moving to larger premises

• Marketing and advertising costs

If you have been running a business for four months or more and have hit a wall financially, you may be able to get a start up business loan with us. We will talk to you about your business and your financial situation and, depending on things like your business accounts, your business’s potential and your personal credit history, we may be able to offer you valuable start up financing that could help you achieve your dream.

When you apply for a small business start up loan, you’ll need to consider some of the following questions:

• How much do I need to borrow?

• How long do I need to repay the start up loan?

• How much can I afford to repay each month?

• Do I have a history of credit problems that could stand in my way?

• Do I have strong sales/turnover?

• Can I afford to repay a loan even if my business doesn’t grow as a result of the loan?

• Can I afford to risk damage to my credit profile if I cannot make repayments?

Borrowing a start up business loan when your business is still in its infancy is risky, as if you can’t afford repayments, your credit file will be affected making it tricky to secure business financing in the future. But don’t worry, our lending experts are on hand to talk you through the process and work alongside you in making sure a loan is the right move for you and your business.

When applying for one of our start up loans, you’ll need to make sure you have your latest business bank statements available, as well as any business plan you may have put together. Because you might not have filed accounts yet, we will take a good look at your financial requirements and situation together to see if we can help you with a business start up loan.

You will also need proof of ID and address so that we can take a look at your personal credit file, which will help us make our decision.

The absolute minimum trading history we need to see from our applicants is four months. If you have been in operation for less than this, consider another option for your financing or come back to us in a few months’ time!

The amount you can borrow depends on a number of factors. Firstly, we will look at your requirement, as it’s unwise to borrow more than you need, especially early on in your business lifecycle. Then, we will take into account things like your turnover and your other costs. Your credit history will also come into play when we make a lending decision.

If you only have a few months trading behind you, we are unlikely to approve a large start up business loan this time round, but we will certainly look at increasing your business loan amount if you repay the first loan on time and continue to maintain a profit.

Our start up business loans are unsecured, which means they aren’t secured against assets such as property or vehicles. However, if you are unable to make repayments, you could incur charges, penalties and increased interest costs. Your personal credit record could also be affected, as well as that of your business, making it more difficult to secure business finance in the future, when you may need it even more.

Banks have very strict lending criteria when it comes to small business loans, and particularly for start up loans. Most would want to see at least a year’s trading history before considering lending to a new business.

We provide start up loans UK businesses desperately need and cannot access through high street banks.