Start Up Loans are designed to support individuals across the UK in starting and growing their business – particularly those who might struggle to access finance from other sources.
We seek to support as many great business ideas and opportunities as we can but we are also committed to responsible lending. That’s why our loan assessment considers both your ability to afford the loan and the viability of your business plans.
During the application process, we will undertake a personal credit check with a Credit Reference Agency (CRA). We will also run a series of other checks with Fraud Prevention Agencies (FPAs) to validate both your personal information and bank account details. If you would like more information on how we use your information, please review our terms and conditions.
While we are not able to lend to every individual that applies for a Start Up Loan, we have supported thousands of people who were unable to obtain finance from other sources (banks, peer-to-peer lenders etc.). After all, personal affordability is just one part of our loan assessment. Our overall loan assessment will also take into account the strength and viability of your business, demonstrated through the business plan and cash flow forecast you submit with your application.
Business partnerships
Where there is a business need, multiple business partners can individually apply for a Start Up Loan of up to £25,000. However, please note we can only lend a maximum of £100,000 to any one business. Each partner’s application will be assessed separately, and if successful, each individual will be personally liable for their loan.
Purchasing existing businesses
You are still eligible to apply for a Start Up Loan if you are purchasing an existing business, even if that business has been trading for more than two years under different ownership, provided you personally have not owned the business for more than two years.
Please note, you will be required to have sourced a copy of the financial accounts for the business along with your application. Furthermore, if the business was previously or is currently at a loss you will be expected to address this issue directly in your business plan.
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 our 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
You’re unable to secure finance from other sources (self-declaration is acceptable)
Franchise businesses can be supported
Business partners can each apply for an individual loan for the same business
Are you ready to kickstart your business journey with a Start Up Loan?
Most business types are eligible to be funded with a Start Up Loan, however we are not able to support the following business types:
- Weapons
- Chemical manufacture
- Pornography
- Drugs
- Illegal activities
- Banking and money transfer services
- Private investigators that do not hold the appropriate licence
- Gambling and betting activities
- Property investment
- Agents for third parties, where a third party earns the majority of the revenue or you would only be earning a commission (not to be confused with franchise businesses which are eligible to apply).
Start Up Loans are designed to finance the initial costs of starting and developing a business, and therefore cannot be used to fund the following activities:
- Debt repayment
- Training, qualifications or education programmes
- Investment opportunities that do not form part of an on-going sustainable business
*Other exclusions may apply and The Start Up Loans Company reserves the right to update this list at its discretion. Please contact us if you have any concerns or questions.
Giving you the right support
We strive to work with as many individuals as we can and where possible, we tailor our approach to ensure you get the right support for your needs. Read on to find out more about how we work with different customers.
NEA participants
We work closely with the New Enterprise Allowance scheme to ensure that eligible participants can access the finance they need to start their own business.
Sharia compliant finance
Many individuals across the UK live according to Islamic values and to give these customers a viable alternative to mainstream funding, we offer a Sharia compliant investment product.
Our success stories
We’ve already backed thousands of businesses with a Start Up Loan. Read on to find out about our success stories and how our support helped them turn their dreams into reality.
