Start Up Business Loans
Startup business loans are bespoke funding solutions designed to help new UK businesses launch and grow. Typically unsecured and government-backed, they’re ideal for early-stage ventures, offering competitive interest rates and valuable mentorship alongside capital.
Unsecured Loan
Tax Loan
Secured Loan
Debt Consolidation
Asset Finance
Acquisition Loan
Apex Loans
Why Choose a Start Up Business Loan?
Designed for new businesses
Available to companies trading under three years, even with limited credit history
Competitive fixed rates
From 6% with the government backed start up loan scheme
Mentorship and guidance
Many providers include business advice or accelerator support
No equity dilution
Provides funding without sacrificing ownership, unlike angel or VC investment
Key Loan Features
Loan Amounts | £500 – £25,000 (government-backed) |
Interest & APR | From 6% (government-backed) |
Repayment Terms | 1–5 years; some providers offer no early repayment penalties |
Eligibility | UK residency, over 18, trading <3 years, viable business plan |
Additional Features | Includes mentorship, networking support, and planning tools |
How Do Startup Loans Work?
- Apply online, providing your business plan and projections
- Credit check – government schemes typically perform hard checks
- Approval & mentoring, often within days
- Repay in fixed instalments – frequently monthly over 1-5 years
Pros & Cons
Pros
- Designed for early-stage businesses lacking collateral
- Competitive fixed interest rates
- Access to expert guidance and free business tools
Cons
- May require personal guarantees or director support
- Lenders expect a solid plan and projections
- Hard credit checks could slightly affect credit score
Feel free to use our Business Loan Calculator
**Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice. It does not take into account your personal or financial circumstances.
Our tailored and transparent process is designed to make your loan search and selection as seamless as possible
Submit Your Enquiry
Simply complete our short online form with your details and funding needs to begin your search for business finance.
Expert Consultation
Our expert will contact you to understand your requirements to match you with suitable lenders and products.
Get Your Offers
We connect you with trusted lenders and provide free quotes. Choose the best option, and we’ll handle the application.
Get Funded!
Once approved, receive your funds and start invest in your business growth and scale with confidence and ease.
Is a Start Up Loan Right for You?
If you already own assets or require larger funding, consider business overdrafts, asset-backed loans, or even angel investment as an alternative.
Best suited for those who:
- Have a clear business plan and projections
- Are trading under three years with minimal credit history
- Need between £500–£25,000 to launch or grow
- Value business support and mentorship
Get Answers to Your Most Common Questions
We've compiled a list of frequently asked questions to provide you with quick and helpful answers about start up business loans in the UK.
Can I get a startup loan with bad credit?
Some lenders consider applications with poor credit, but may offer higher rates or ask for guarantees. Government schemes are more accessible but still require viability.
How long until I receive funds?
Government-backed loans usually take 2-4 weeks.
Is my personal credit affected?
Yes,most startup loans conduct hard credit checks and may require personal guarantees, impacting your personal credit score.
Do I need to be a registered business to apply for a start up loan?
Not always. Many lenders and schemes, such as the government-backed Start Up Loans allow sole traders, partnerships, and limited companies to apply, even if the business is still in the planning stage. However, you must demonstrate a clear intent to start trading within a set timeframe (usually 3-6 months).
Can I use a start up loan for any type of business?
Most sectors are eligible, including retail, tech, hospitality, and professional services.
However, certain industries like gambling, arms, and tobacco are typically excluded by ethical lending policies. Always check the lender’s acceptable use criteria before applying.
How to Apply: 5 Easy Steps
- Prepare your business plan & financial forecasts
- Compare providers
- Check your credit status & eligibility
- Submit your application
- Receive your funds