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
1 product found
  • Start Up Loans (British Business Bank) logo

    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
    • Minimum Turnover
      No minimum
    • Available Amounts
      £500 to £25,000
    • Available Terms
      1 year to 5 years

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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Last updated on 30 March 2021.

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.

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