A Start-Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.
In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.
The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.
All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 available per business.
- Borrow £500 – £25,000 (The average loan amount is £7,200) Fixed interest rate of 6% p.a.
- 1 – 5-year loan repayment term.
- Free application support.
- Post-loan support and mentoring are free.
- Free templates & guides. No application or set-up fees.
To be eligible to apply for a Start-Up Loan, you must fit the following criteria:
- You’re 18 years of age or older.
- You must be a current UK resident.
- You should be starting a new business or have been trading for up to 24 months.
- You’re unable to secure finance from other sources (self-declaration is ok).
- Your business is based in the UK.
- You have the right to work in the UK.
- Your business type and loan purpose is eligible under the terms of the scheme.
- You pass credit checks and you can afford to repay the loan.
Excluded business types
Most business types are eligible to be funded with a Start-Up Loan, however, they are not able to support the following business types:
- Chemical manufacture
- Illegal activities
- Banking & money transfer service and other FCA regulated activities
- Private investigators that do not hold the appropriate license
- 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)
Excluded loan purposes
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 programs
- Investment opportunities that do not form part of an ongoing sustainable business.
How Do I Apply?
Here are the steps involved in applying for a Start-Up Loan:
DOCUMENT VERIFICATION & REGISTER
Firstly, contact us on firstname.lastname@example.org to state your interest in a start up loan and fix a time to speak with us about your business. We will then provide you with a link to register via our website www.bizlawuk.co.uk, which will enable you to start your application as well as offer you a free legal health check. At this stage, all you’ll need to provide is basic details such as your full name and contact details including website if any, email address and mobile phone number. After registering via the link on our website, you’ll receive an email asking you to create an account and password so you can log into their customer portal where you can start your application.
COMPLETE AN APPLICATION FORM
Stage 1: Provide information about your situation, how much you’re seeking, and how you’ll use the loan.
Stage 2: A personal credit check will be run to further assess your eligibility in line with the Scheme’s commitment to responsible lending.
Stage 3: Upon passing the credit check, they ask you to submit a Business Plan, Cash Flow Forecast and Personal Survival Budget and allocate a dedicated business advisor to help you. There is a 90-day window for you to complete your application.
FINALISE BUSINESS DOCUMENTS
Your business adviser will review your business plan as well as any key supporting documents and will work with you to get them ready for assessment. Their assessment will take into account the strength and viability of your business demonstrated through the Business Plan and Cash Flow Forecast and the affordability of the loan through your Personal Survival Budget. If your application is successful, you will be invited to take up 12-months of free post-loan support.