David Allan

Expertly compared by David Allan

Products Updated May 27, 2018

Start up Business Loans

Looking to start a new and exciting business? Get the financing advice and funding options from our approved business loan brokers. They’ll search the market to find you the right loan for you and your business venture.

Our business finance experts can compare the market from over 70 approved lenders. From start up's to SME's we've got you covered:

3 providers expertly compared:

Learn More
All credit types
Rated 5.0/ 5

Choice Loans Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£5,000 - £10,000,000

Representative APR
From 2.6%

Loan Term
1 - 35 years

Loan Type
Business Finance Broker

Status
Sole Trader & Limited Companies

Choice business loans can arrange a wide range of business finance solutions for business of all sizes. Services include business loans. Crowdfunded business Loans, Short term unsecured business loans, Merchant cash advance, Pension led business finance, Overdraft alternatives, Asset finance, Asset backed loans, Invoice finance, Commercial mortgages.

3 providers expertly compared:

Learn More
All credit types
Rated 5.0/ 5

Funding Options

Loan Amount
£5,000 - £10,000,000

Representative APR
From 2.6%

Loan Term
1 - 35 years

Loan Type
Business Finance Broker

Status
Sole Trader & Limited Companies

Funding Options is a credit broker and not a lender. They match small businesses like yours to different loan providers every day. Whether it's business loans, commercial mortgages, invoice financing, asset leasing, growth finance or something else, they can help find you a great deal.

3 providers expertly compared:

Learn More Available via broker only
All credit types
Rated 4/ 5

Start Up Loans

Loan Amount
£500 - £25,000

Representative APRC
%

Loan Term
1 - 5 years

Loan Type
Start Up's

Status
Sole Trader & Limited Companies

Start Up Loans provides new businesses the finance they need with the help of a government-backed loan. A great alternative for entrepreneurs and businesses looking for business loans to fund their start up.

About Start-Up Business Loans

Loans to get  your business on its way

Loans to get your business on its way

When it comes to starting a new venture, it can be challenging to get support especially financial support. When many new businesses fail in the first five years, many mainstream financial organisations are reluctant to help early-stage companies. However, the British Business Bank is available to help start-up ventures with start-up business loans.

To help businesses, when entrepreneurs need more than personal savings and support from family and friends, the British Business Bank has partnered with the Start-Up Loan company. This partnership offers funding to entrepreneurs to help businesses to have a good start for a great future.

What is a start-up business loan?

The British Business Bank and Start-Up Loan company offer loans with a maximum amount of £25,000. Not only do the loans offer financial support to businesses that have been trading less than 24 months, but the Start-Up Loan also provides advice. The British Business Bank and the Start-Up Loan company know how difficult it can be for new business to develop. They offer successful applicants funding as well as mentoring, advice and business planning.

Can I apply for a start-up loan?

There are some key criteria to follow in order to apply for a start-up loan. Applicants must;

  • Be a UK resident
  • Be over the age of 18
  • Have a business that has been trading less than two years
  • Base their business in the UK
  • Develop a business idea.

If candidates meet the criteria, then they can apply directly via Start-Up Loans or partner providers which include Newable and Art Business Loans.

What will I receive?

Successful applicants will receive finance ranging from £500 to £25,000. There is a difference with start-up loans, and they are vastly different from many business loans. A government-backed start-up loan is more like an unsecured personal loan rather than a business loan. You are personally responsible for the repayment of the loan, not the business.

As well as the unsecured business loan that you can use to grow your business or begin your venture, you will also receive free guidance and support. Experts will be on hand to help write your business plan. You can also enjoy 12 months of free mentoring to help support your business. Furthermore, there is no application fee or early repayment fee as part of the conditions of the loan which gives a new business an extra helping hand.

What are the requirements of a start-up loan?

A start-up loan has a typical repayment term of between one to five years, which will be determined by the lender based on the amount you borrow and the amount you can afford to repay per month. As with any loan, there is interest charged on the loan, but this is at a fixed interest rate of 6% per year. The fact the loan is government-backed helps to give the security needed, and the interest rate is extremely competitive.

How do I apply for a start-up loan?

How to successfully apply

How to successfully apply

The first thing you need to do is check whether a loan is suitable for you. You can check the figures by using a loan calculator to work out whether you can afford to repay the amount you want to borrow. A loan calculator will also give you the monthly and yearly figures which you can adjust on a sliding scale of how much you want to borrow and over what period.

If you meet the criteria for eligibility, then you can begin the process of applying for a start-up loan by registering your details. You can choose your preferred delivery partner, or registration can match a partner for you. However, it is worth researching the different partners to see if there is an ideal match for your company.

After registering, the delivery partner you have chosen will then appoint a business advisor to your case. The business advisor will then get in touch to help you with an application form. During the application process, you will be subject to a credit check to ensure you meet the criteria for responsible lending.

To support your application, you will need to include a variety of business documents which include;

  • Business place
  • Personal survival budget
  • Cash flow forecast.

Your appointed business advisor can help you with these documents, and there are many free templates available to help you. Once you are happy with them, you can send them to your business advisor, alongside your application, for approval.

If the loan is approved, you will have a loan agreement sent to you, and you can begin to make the most of the support available to you with a start-up loan.

 

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Rating: 4.6 / 5 with 27 votes

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