A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK. These loans are for new businesses or those which have been trading for less than three years.
In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.
The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.
All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.
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To be eligible to apply for a Start Up Loan, you must fit the following criteria:
- You’re 18 years of age or older
- You’re a current UK resident
- You’re starting a new business or have been trading for up to 36 months
- You’re unable to secure finance from other sources (self-declaration is ok)
- Your business is based in the UK
- You have the right to work in the UK
- Your business type and loan purpose is eligible under terms of the scheme
- You pass our credit checks and you can afford to repay the loan
If you are in a business partnership, buying an existing business or starting a franchise, you are able to apply for a Start Up Loan if you fit the criteria above.
Every individual can only apply for a Start Up Loan for one business, so if you own multiple business ventures you will only be able to access finance for one of them.
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Your loan can be spent on a wide range of things related to your business, like equipment and stock, a premises, marketing and promotional expenses to name just a few. It’s important to note however that you must be able to describe your intentions for your loan within your business plan and cash flow forecast and explain how this will help you start and/or grow your business.
There are a few activities that cannot be funded with a Start Up Loan, including debt repayment, training qualification and education programmes or investment opportunities that do not form part of an on-going sustainable business. Please see our full eligibility criteria for more information on excluded business types and loan uses under the scheme.
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Most business types are eligible to be funded with a Start Up Loan, however we are not able to support the following business types (other exclusions may apply and this list may be updated):
- weapons
- chemical manufacture
- pornography
- drugs
- illegal activities
- banking & money transfer service, and other FCA regulated activities
- private investigators that do not hold the appropriate licence
- gambling and betting activities
- property investment
- agents for third parties, where a third party earns the majority of the revenue or you would only be earning a commission (not to be confused with franchise businesses which are eligible to apply)
- charities (Community Interest Companies / Not for Profit and Social Enterprises with a sole community focus can be considered on a case by case basis)
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- Borrow £500 – £25,000 (the average loan amount is £9,295). Can be taken in tranches or as a single lump sum.
- Fixed interest rate of 6% p.a. (Sharia Compliant Finance is also available.)
- 1 – 5 year loan repayment term
- Free application support
- Free post-loan support and mentoring
- Free templates & guides
- No application or set-up fees
There are also business benefits such as discounts at retailers and offers on personal development and training.
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Visit the Start Up Loans site at the link below to begin your application.
Submit your application form and we’ll be in contact within two working days.
Upon passing the credit check, you’ll be assigned to one of our Business Support Partners with a dedicated business adviser.
There is a 90-day window for you to complete your application.