Business Start Up Loans

Posted on 14th June 2022 by Streets - Business Support

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.

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