What is a start up loan?
Start up loans are a form of funding that can help get a business up and running or expand in its early stages. This can come in many different shapes and sizes. For example, a government start up loan is structured as a personal loan; other start up loans will take the form of business loans. It is important before borrowing that you are aware of the varying level of risk that comes with each of these products.
As with any loan, a start up business loan sees you borrow a set amount and pay it back, plus interest, over an agreed period of time. You can get a start up loan directly from a mainstream lender such as a bank, from an alternative online lender, through the government Start Up Loans scheme or through a broker. Ultimately, the exact way a business start up loan works will depend on the type of loan.
Whatever the loan type, you’ll need to prepare a clear business plan and cash flow forecast before applying.