Start Up Loans Product Video
About Start Up Loans
Start Up Loans was launched in September 2012 with a mission to give more UK businesses the opportunity to access funding to start, run and grow their business.
The Start Up Loans Company is an independent, privately managed company, whose loans are backed by the government and supported by the British Business Bank.
The funds they distribute are loans and not grants. They are personal loans to be used for business purposes paid back on a monthly basis.They are unsecured, so do not require a guarantor or collateral.
In addition to lending money to get started or grow, the Start Up Loans Company loan includes 15 hours of free 1:1 mentoring to be used over the first 12 months of the loan period and assistance in creating a business plan and cash flow forecast.
Who is eligible for a Start Up Loan?
The main criteria are:
- You are 18 years of age or older.
- Your business is or will be based in the UK.
- You’re a current UK resident.
- You have the right to work in the UK.
- You’re starting a new business or have been trading for up to 24 months.
- You’re able to pass the credit checks and demonstrate that you can afford to repay the loan.
- Your business type and loan purpose is eligible under the terms of the scheme.
How do you apply for a Start Up Loan?
Initial registration is with the The Start Up Loans Company but then your registration is passed onto one of their delivery partners to progress. You can select which delivery partner you would like to be paired up with if you have a preference or the Start Up Loans company will match you with the provider most local to you.
Alternatively you can register with one of the Start Up Loans Company’s delivery partners direct. Delivery partners are groups of experienced business advisers, who are located in regional areas or nationwide.
Your delivery partner receives your registration and works with you to submit a full application to the Start Up Loans Company. The application requires you to complete a business plan, a cash flow forecast and personal survival budget. They supply templates for all three of these to make their expectations clear. The Start Up Loans Company needs a thorough understanding of what your business does and what your intentions are with the funds. They are responsible lenders and want to be sure repayments will be affordable and manageable which is why they need you to supply this information.
Once your delivery partner has received your registration form with details about your business, they will run a credit check to assess your viability. These checks are done through a credit checking agency and have a 3 month life typically. To avoid delay and further credit checking footprints on your profile it is ideal to have your business plan, cash flow forecast and personal survival budget well thought through or just needing some polish. Your delivery partner will help you with this.
Once you have all your documentation together, your credit checks have come back favourably and you have completed your application form, you can then lodge your application in full with the Start Up Loans Company. A loan assessment will be carried out to evaluate whether you have a strong business plan and you can afford the repayments.
A decision should be reached within a few weeks to a couple of months, depending if any supporting documentation is required.
How much can you borrow from the Start Up Loans Company?
Each Individual can borrow from £5,000-£25,000, the amount you borrow is subject to your individual need and business plans. The interest rate is fixed at 6%. The interest generated by the loans is ploughed back into the Start up Loans Company to keep it viable for the future.
The loan is to be paid back between 1-5 years of receiving the funds. When the loan is agreed you set your repayment terms so you can pay back a manageable monthly amount. There is no fee to apply.
If you need a second loan, this can also be agreed. You will need to have paid back six months worth of repayments of your existing loan before you can apply. Your total outstanding loan balance cannot exceed £25,000.
More than one individual from a business can apply for a loan, but as these are personal loans with personal credit checks applied, each individual must apply for their own loan. There is a maximum of £100,00 which can be loaned to any one business.
Features & Options of Start Up Loans
- You are 18 years or older at the time of your application.
- Your business is or will be based in the UK – this means your business must be a UK registered company and/or registered in the UK for tax purposes.
- You’re a current UK resident and will be for the duration of your proposed loan term.
- You have the right to be self-employed in the UK.
- You are not currently bankrupt or on a Debt Relief Order (DRO), nor have you been discharged from one of these in the last two years.
- You do not currently have an outstanding Individual Voluntary Arrangement (IVA) or Trust Deed, nor have you been discharged from one of these in the last two years.
- You are not currently on a Debt Management Programme or Debt Arrangement scheme.
- You are starting a new business or you have been trading for no longer than 24 months.
- No set up or early repayment fees.
- Pre-loan support with business plans and cash flow forecasts.
- 12 months of free mentoring for loan recipients.
- A range of useful templates and start up guides.
- Exclusive business offers.
Start Up Loans Pricing
Maximum Loan: £25,000.
Interest Rate: 6% per annum.
Repayment Terms: 1-5 years.
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