Your best fit: A Start Up Loan

Based on the answers you gave, a Start Up Loan fits where your business is today.

It's designed for new businesses and those trading for up to five years. The Start Up Loan offers funding alongside support to help you get started and grow with confidence.

To qualify for a Start Up Loan, you must be:

• Aged 18 or older
• A current UK resident
• Starting a new business, or trading for up to 60 months
• Unable to secure finance from other sources (self-declaration is ok)
• Operating a business based in the UK which is in an eligible sector
• Legally entitled to work in the UK
• Able to pass our credit checks and afford to repay the loan
• Intending to use the loan for an eligible purpose, under the terms of the scheme

Your loan can be used for virtually any business purpose, including:

• Equipment, machinery and technology
• Stock and materials
• Marketing and advertising
• Website development
• Vehicles
• Premises and associated costs
• Professional service fees
• Working capital

This isn't a complete list. As part of your application, you'll have an opportunity to explain how you intend to spend your loan.

There are no application or setup fees for a Start Up loan. Interest is fixed at 7.5% per year. Monthly repayments depend on the amount you borrow and your chosen repayment term.

You'll find a representative example further down this page.

You'll typically get a decision on your loan within 3-8 weeks. This depends on your assessment and approval process.

Yes. There are no early repayment fees on a Start Up Loan.

No. This is an unsecured personal loan. You won't need to put up an asset like your home or business premises as security.

If your application is successful, you'll also be eligible for 12 months of free business mentoring. This is designed to help new entrepreneurs make the most of their first year.

Your Start Up Loan Manager will look at three main things when assessing your application:

• Your creditworthiness
• Your ability to afford the loan
• How viable your business idea is

To be eligible for a Start Up Loan, your business can't have been trading for more than 60 months (five years).

'Trading' is defined as the length of time you've actually been providing services, buying and selling goods, or otherwise generating consistent revenue.

Time spent on ad hoc marketing, market research and testing, or incurring expenses for non-revenue generating purposes don't count towards your trading time.

Yes. Start Up Loans are available to businesses intending to start trading soon, as well as those which have operated for up to 60 months.

Each eligible founder can borrow £500 - £25,000. An application is limited to a maximum of four founders.

In general, poor credit history doesn't automatically disqualify you from getting a Start Up Loan, but it would be considered as part of your application.

Because it's a personal loan, your past financial behaviour will form part of the assessment made by the Start Up Loans Company.

Some more serious credit circumstances would prevent you from getting a loan. These include bankruptcy, Debt Relief Orders (DROs), an outstanding Individual Voluntary Arrangement (IVA) or Trust Deed, as well as being on a Debt Management Programme or Debt Arrangement Scheme (DAS).

The Start Up Loans Company will carry out a personal credit check if you decide to fully proceed with your application.

This doesn't happen until later on in the process. Simply submitting an enquiry doesn't require a credit check.

As part of your application, we'll need to see a business plan, cashflow forecast and personal survival budget.

After you complete the form below, we'll provide you with templates to make it easier to prepare these documents.