Start-up Loans for businesses 0-5 years

When you’re trying to start a business, finance can be the key to getting your idea off the ground.

That’s why the British Business Bank, in partnership with our designated North East loan provider Business Enterprise Fund, is funding loans of up to £25,000 for entrepreneurs within their first 5 years of trading. In addition to finance, entrepreneurs also gain access to mentoring and advice to ensure their budding businesses get the best start in life.

Provided by: Start Up Business Loans - Start Up Loans

What is a Start-up Loan?

A Start-up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.

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.

Loan overview

• Borrow £500 – £25,000 (The average loan amount is £9,295)
• Fixed interest rate of 7.5% per annum
• Repay the loan over a term of 1–5 years
• Free application support
• Templates for writing business plans and cash flow forecasts
• 12 months of free mentoring once you receive a loan
• A range of useful templates and how-to guides
• No fees for arranging the loan or paying it back early
• Exclusive discounts on business products from O2, Experian, Intuit, and 30+ more

It can be difficult to assess how much to borrow and when.  A tranched loan allows you to borrow part of the amount your finance provider has agreed to lend to you now, with the rest (if you need it) to follow at a later date.  You can find out more about tranched loans here.

Eligibility criteria

To be eligible to apply for a Start-up Loan, you must meet 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 5 years
• 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 type of business and reason for wanting the loan is eligible under the terms of the scheme
• You pass credit checks and you can afford to repay the loan

Start-up Loans has also partnered with The Open University to create a range of free courses for entrepreneurs. Find out more about Learn with Start-up Loans here.