Start Up Loans Company is a UK Government backed scheme which offers those wishing to start or grow their business access to finance and free support. Receive an affordable personal loan of up to £25,000 to set up or grow your business, purchase stock, for marketing or investing in operations. The scheme provides assistance during the application process, and can help you develop a business plan and cash flow forecast. All loan recipients are also given access to a free expert business mentor for the first 12 months, who can provide a trusted sounding board to help build your business.
What type of funding does Start-Up Loans provide?
£500 – £25,000
1 to 5 years
1 week to 3 months
What do I need in order to qualify for funding?
Start Up Loans are available to pre-start up, or anyone trading for no longer than a period of 24 months. You must be 18 + at the time of registration, have the legal right to remain in the UK for the duration of your loan term and the right to be self-employed.
How do I apply to get funding?
To apply for funding you will need to complete the registration form on their website. Your details will be sent to the most appropriate Delivery Partner and upon receipt of your registration, you will be contacted within 3 working days.
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What is the process to receive funding?
After you have completed the online registration, and submitted a business plan and cash flow forecast, your Delivery Partner will then put forward your application to be considered for funding. After your application for a Start Up Loan is approved, you will be able to access funds through your personal bank account.
“The start-up loan, helped me get started with the much needed financial resource. With the loan we were able to hire people to develop our business and take the business forward very quickly. Schemes such as the Start Up Loans are a great help for start-ups, since banks will not lend to start-ups with no trading history.”
Does Start Up Loans run a credit check?
Yes, Start Up Loans orders a personal credit report.
Do I have to provide security or a guarantee?
Collateral is not required.
Are there fees involved?
There are no additional fees to set up or maintain a loan account.
What are the interest rates?
The interest for a Start Up Loan is set at a fixed rate of interest – 6% nominal. The interest received is recycled back into the program to allow them to support more entrepreneurs.
What documentation do I need to provide?
Start Up Loans requires all borrowers to provide a business plan and cash-flow forecast.
How long will it take for money to get into my account?
Delivery of funds will depend on which stage you are at with your business plan and application. With the correct documents, funding can be received within a week. With no documentation (business plan or cash-flow) the average time is 3 months.
What happens in the case of a default?
Start Up Loans are personal loans and therefore still remains payable in the event a business ceases trading. In general, all loan providers follow standard market practice when loan repayments are missed and take a fair and reasonable approach.
Is Start Up Loans regulated?
Start Up Loans is regulated by the FCA in England and Wales.