START ME UP!
We’re an independently managed, government-backed scheme, supported by the British Business Bank and designed to support businesses who struggle to access other forms of finance.
We work with a national network of Delivery Partners who are based across England, Wales, Scotland and Northern Ireland. In addition to helping applicants prepare their business plan and cash flow forecast, our Delivery Partners are responsible for assessing final applications and providing ongoing mentoring support to successful applicants.
We also work with two Finance Partners, Street UK Limited and The Enterprise Loan Fund (trading as Business Finance Solutions), who are responsible for administering the loan agreements and funds to successful applicants. Our Finance Partners are the key point of contact for any matters relating to loan administration and repayments. Delivery Partners do not get involved at this level once the loan has been granted.
All of our Delivery Partners and Finance Partners are closely monitored by The Start Up Loans Company to deliver a consistent approach to supporting applicants and ensure responsible lending decisions are made across the network.
A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.
With a fixed interest rate of just 6% per annum and the ability to borrow between £500 and £25,000, Start Up Loans offer an affordable source of finance to help new and early stage business owners bring their plans to life.
When reviewing Start Up Loan applications, we consider two core factors: your personal affordability and, just as importantly, the viability of your business plan.
And because we make it our mission to help you not just start up, but survive and thrive, our support goes beyond what typical lenders provide. We offer a range of free options for guidance, both during the application process and once you’ve secured the loan, to help put you in the best possible position to succeed.
Start Up Loans are structured on a monthly repayment schedule, based on a loan repayment term of between one and five years.
- Borrow £500 – £25,000
Fixed interest rate of 6% p.a.
1 – 5 year loan repayment term
Free application support
Free post-loan support and mentoring
Free templates and guides
No application or set-up fees
No early repayment fees
Exclusive business offers
Looking for funding to start or grow your business?
Join more than 36,000 Start Up Loan recipients and realise your business dream
The Government-backed Start Up Loans Company provide funding and free mentoring support to help start or grow your business. They offer personal loans for business purposes up to the value of £25,000.
As of April 2016 they have backed more than 36,000 businesses, lending over £200 million. Read below to find out how you can join the other Start Up Loan recipients and turn your business dream into a reality.
Is your business ready to get a loan?
10 Questions you need to ask yourself before applying for funding With the start up culture thriving in the UK, the Government-backed Start Up Loans Company outlines 10 questions you need to ask yourself before applying for funding for your business.
1. Have you written a business plan?
A written business plan is one of the first steps in turning your business idea into reality. It helps to clarify your business idea and spot any potential problems. When applying for funding, your business plan is the ‘face’ of your application, so make sure it’s saying what you want it to say.
If you’re struggling with how to structure it and what to say, Start Up Loans have a useful business plan template.
2. Do you have proof of any sales or contracts discussed in your business plan?
A good business plan will detail the market your product/service is targeted at. It will also detail the demand for the product/service your business will provide.
If you are going to make claims of sales or contracts in place already, you have to be able to verify them with proof. This might mean providing a copy of the contract etc.
3. Is your business plan up to date? And have you reviewed the content?
The dynamic nature of business is likely to mean that things will change as you work on your business plan. It is imperative that, when you apply for funding, you are presenting a business plan that is as up to date as possible.
In addition, simple things like checking your spelling will improve your application’s professionalism and increase your likelihood of getting funding.
4. Have you prepared a cash flow forecast?
This is a forecast of how you see your business performing financially. For anyone assessing whether to lend or grant you money, it’s also their opportunity to see if you have thought everything through. So make sure you include all of your costs and your revenue streams.
Most importantly, be realistic. It might look impressive to have £1,000,000 in the bank after 12 months, but this is generally not going to be the case.
If you need more guidance on preparing a cash flow forecast, Start Up Loans have some tips and a free cash flow template.
5. Does your business plan match up to your cash flow forecast?
Check that the numbers you mention in your business plan are the same as those in your cash flow forecast. Everything needs to tally, so make sure you check that you aren’t saying one thing in your plan and another in your cash flow.
6. Have you got a Personal Survival Budget?
Before applying for funding, you need to work out the absolute minimum that your business needs to make to support you – this is called a Personal Survival Budget. This is done by looking at exactly how much money you need to survive i.e. to pay essential bills such as rent, food and childcare. You will need to live on this money while the business is up and running so it is important you think about this carefully. Too often this is ignored or not done well enough.
The Money Advice Service has a great budget planner you can use for this purpose. Don’t forget to look at your bank statements. You’ll be surprised how much you are actually spending!
7. Do you know the industry you are looking to enter?
It’s very important that you know the industry your business is entering. Do as much research as possible; know the products, the competitors and how others operate.
If you’ve identified a gap in the market make sure you can talk about this and explain how your business will stand out from the competition. It shows you are committed and it’s always impressive when someone can answer these questions without having to consult their phone.
8. Can you demonstrate that you have managed your existing debt, hire purchases and bills as best you can?
This shows that you can manage finances and gives confidence that you will manage further debt well.
9. Do you have an exit strategy or a plan B?
Not all start up businesses work out. If you can demonstrate that you have alternative options, you will come across as more responsible and improve your chances of accessing funding, especially debt.
10. Finally, do you know what you require the funding for?
Provide (in as much detail as you can) a breakdown of what you need the money for. Supplying quotes for equipment or work to be done is always helpful and shows that you are only looking for what you need.
To read stories about people who have realised their business dream with the help of funding from The Start Up Loans Company visit their website.