The Start Up Loan

Did you know that the government offers a Start Up Loan Scheme which is great news for businesses who are finding it difficult to get funding from other sources. 

What is the Start Up loan? 

  • It’s a government-backed personal loan available to individuals looking to start or grow a business in the UK. 
  • Successful applicants also 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. 

The headline facts 

Each owner or partner of the business can borrow £500 – £25,000 (The average loan amount is £7,200

There is a fixed interest rate of 6% per year for the duration of the loan. 

  • 1 – 5 year loan repayment term 
  • Free post-loan support and mentoring 
  • No application or set-up fees 

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. 

Are you eligible? 

  • You’re 18 years of age or older 
  • You’re a current UK resident 
  • You’re 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) 

Register on Start Up Loans  

Start Up Loan is a personal loan that is used for business purposes and therefore you are personally liable for repaying the full loan amount. 

The registration form only takes 5 minutes to complete  

and you can always ask one of the team for help! 

Submit your… 

  1. Business plan 

A business plan is the blueprint for your business and is a great tool for focusing your thinking. It helps us understand your goals and how you plan to achieve them, how well you know your market (your customers and your competitors) and what resources you’ll need to deliver and promote your products or services. Importantly, it shows how you plan to make money and ensure your business is sustainable. 

  1. Cashflow forecast 

A cashflow forecast is an estimate of the money you expect your business to bring in and pay out over a period of time (we require a 12-month forecast). It reflects all of your revenue sources (like sales or other payments from customers) compared to your expenses (like supplier payments, premises rental and tax payments). It helps understand how sustainable your plans are and allows you to predict the financial performance of your business. 

  1. Personal survival budget 

Your personal survival budget is a list of all the money you earn or receive in an average month (like a salary, benefits payments or other family allowance) minus a list of all the costs you incur that month (like your rent, your utility bills and your monthly grocery bill). It helps determine whether you will be able to manage your monthly loan repayments and whether your business will be able to support your lifestyle. 

There are templates on this link, otherwise we can help you with the process of applying! 

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