Business Start Up Loans

Posted on 14th June 2022 by Alexis Outram -  Business Support


Image to represent Business Start Up Loans

Financing a new Start Up business is one of the most crucial aspects of helping a new venture to succeed. Obtaining finance for a new business can be an arduous process. For example, borrowing money from a mainstream bank may not be an option or only possible with security conditions such as a personal guarantee. 

There is a government backed scheme known as the Start Up Loan scheme that may be able to help. This scheme offers personal loans to individuals looking to start or grow a business in the UK. Applicants that are accepted are also paired with a business mentor for 12 months. This loan is unsecured, meaning there is no need to provide any personal assets or guarantors to support an application.

Business owners or partners in a business can individually apply to borrow from £500 - £25,000 each, with a maximum of £100,000 available per business. The average loan amount using this scheme is in the region of £7,200. There is a fixed interest rate of 6% per annum with the option of a 1-to-5 year loan repayment term. There is no application fee and no early repayment fee.

To apply for the loan all of the following must apply:

  • you live in the UK
  • you are 18 or over
  • you have (or plan to start) a UK-based business that has been fully trading for less than 36 months.

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


We are unpaid tax collectors

Clients often refer to the VAT added to supplier invoices as if it were a cost to their business regardless of their VAT position. This is true if you are not registered for VAT, you do not have to add VAT to your sales and you cannot recover ...


Time to rethink the credit you offer your customers

Clients often refer to the VAT added to supplier invoices as if it were a cost to their business regardless of their VAT position. This is true if you are not registered for VAT, you do not have to add VAT to your sales and you cannot recover ...


Public sector productivity

In a recent announcement by the Treasury, it was announced that plans are afoot to deliver up to £1.8bn of productivity benefits by 2029. The aim is to improve public sector productivity, including releasing police time for more frontline work.  The Chancellor is promoting increases in ...


You might also be interested in...