Compare Startup Business Loans
- If you're looking for funding to start your own business then a startup loan is ideal
- Our comparison table below lists a panel of UK specialists that provide business start up loans
- Nationwide Finance help 35,000 businesses get finance each year
- Direct funder - not a broker
- Same day decision, funds within 48 hours
- Applicant must be 18 or over
- Nationwide Finance cannot offer finance to businesses located in Scotland, Northern or Republic of Ireland
- Nationwide Finance will need the name(s), dates of birth and home address(es) for all the business owners
Start Up Loans (British Business Bank)
- Interest rate of fixed 6% per annum
- Receive business mentoring and support after drawing down your loan
- No application fees or early repayment fees
- Start Up Loans is a Not-For-Profit Company offering a finance and mentoring solution to start and grow a business
- Start Up Loans have helped over 40,000 businesses get started in the UK
- Free application support
- Free post-loan business mentoring
- Business is based in the UK
- Trading for under 24 months
- 18 years and over
Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.
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Startup Business Loans FAQ
Start Up Loans are aimed at fledgling businesses looking to expand or new entrepreneurs launching new ventures. Before you apply for a start-up business loan ensure that you understand how they work and how best to choose a loan to suit your needs. Below you will find some of the most commonly asked questions about Start Up Loans - just click on a question heading for a straight-to-the-point answer.
What is a Start Up Loan?
Start Up Loans are government-backed personal loans that can be accessed by individuals looking to launch a business in the UK. Often, providers will need to assess your personal affordability levels and the viability of your business plan before awarding finance.
Typically, Start Up Loans are accessed by new business owners looking for finance to help them expand or emerging entrepreneurs who have a unique idea for a business but very little capital to help them get their concept off the ground. Government Start Up Loan recipients should also have access to 12 months of business mentoring when they receive their loan.
Start Up Loans are usually structured with monthly repayment schedules, based on terms that last between one, and five years.
Is a Start Up Loan a business grant?
No. Unfortunately, while a grant is a non-repayable fund that can be awarded to certain businesses by an organisation or group for a specific purpose, a Start Up Loan must be repaid in full over a pre-agreed term.
What are the interest rates?
Unlike most loans, wherein the interest rate can vary, Start Up Loans that are backed by the UK Government currently have a fixed interest rate of 6% per annum. The government also provides applicants with free guidance and support in completing their business plan.
How much can I borrow?
The amount that you are permitted to borrow will depend on specific circumstances, including your personal repayment opportunities, and your business plan. Each individual will be able to borrow somewhere between £500 and £25,000 if they are eligible for the Start Up Loan scheme.
However, if multiple business partners each apply for a loan in the same business, a maximum of £100,000 may be lent to that business in its lifetime.
If you are successful in applying for your Start Up Loan, once you have made six repayments, you may be eligible to apply for additional finance in the form of a second loan.
Can anyone apply for a Start Up Loan?
To successfully apply for a Start Up Loan, you will need to be:
- Not connected with any debt arrangement or debt management program
- Not currently involved with an outstanding Individual Voluntary Arrangement (IVA) or Trust Deed
- Not bankrupt or on a debt relief order
- The owner or co-owner of a UK-based business which has not been trading for over 2 years
- A UK resident
- Aged 18 or over
Start Up Loans are designed for use with brand new businesses, or to grow a young business that has been trading for under 24 months.
How many Start Up Loans can I apply for?
Individuals can only apply for a Start Up Loan for one business. This means that if you own numerous companies, you will only be able to get finance for one of them. However, if after you have successfully applied for a Start Up Loan you need further funding, you may be eligible to receive a second loan.
The second loan requires a new application process and you will need to have made at least six months of full repayments prior to the application.
Can I apply for a Start Up Loan with poor credit?
Poor credit can be a common problem for any individual in need of financial assistance. While your credit rating will only be one of the factors under consideration when applying for a Start Up Loan, the scheme is committed to responsible lending based on affordable repayments.
In some circumstances, your poor credit history could prevent you from accessing a Start Up Loan.
365 Business Finance Business Loans
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Capify Business Loans
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Cubefunder Business Loans
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EJ Finance Business Loans
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Fleximize Business Loans
Flexible business loans with secured and unsecured borrowing options and dedicated support for customers.Read more
Funding Bay Business Loans
Commercial finance broker helping SMEs raise funding via a range of product typesRead more
Funding Circle Business Loans
Commercial peer-to-peer platform that connect businesses in need of funding to willing investors.Read more
Funding Xchange Business Loans
Funding Xchange is a commercial finance broker that covers various types of business loan products for all sorts of commercial organisation.Read more
iwoca Business Loans
Flexible funding to help with business cash flow in the form of straightforward lines of credit.Read more
MarketFinance Business Loans
Straightforward unsecured loan and invoice finance products with quick application and funding processes.Read more
Nationwide Finance Limited Business Finance
Specialist business funder that offers various types of commercial finance including secured start-up loans and equipment refinancing.Read more
NatWest Business Loans
Traditional high street bank offering a comprehensive range of commercial funding options to all kinds of UK business.Read more
Newable Commercial Finance
FCA-regulated commercial finance broker with access to 200+ lenders.Read more
Portman Asset Finance Business Loans
Business finance broker with specialist sector experience to offer fast and flexible finance solutions.Read more
Puzzle Funding Business Loans
Commercial finance broker with a large panel of UK lender.Read more
Start Up Loans Company (British Business Bank)
A subsidiary of the British Business Bank, Start Up Loans Company was created to provide funding for new businesses.Read more
Swoop Funding Business Loans
Simple, secure and speedy access to over 1,000 funding providers without affecting your credit rating.Read more
THINK Business Loans
Commercial loans broker using a tech-based approach to match potential borrowers to a wide range of lenders.Read more