Banner Startup Loan

Start-Up Loans are personal loans designed to help new businesses that begin trading. We at 24/7 Business Finance deal with Start-Up Loans which are funded by various lenders. You can get up to £100,000, payable over one to five years, at a fixed interest rate of 6%.

Startup Financing

Content:

  1. What is a Start-up Loan?

  2. How start-up loans can benefit your business?

  3. Features of a start-up loan

  4. Eligibility Criteria for Startup Loan

  5. Why should you choose us?

  6. Pros of Startup loans

  7. Bottom line

  8. FAQs

24/7 Business Finance works at the ease of its customers so that you can get the start-up loan as early as you complete the process. The processing period is also dependent on the nature of your business and your level of preparedness. You could get your loan in a month if you’re well prepared. It could take a long time if you need additional time to finish your application.

What is a Start-up Loan?

A start-up loan as the name indicates is the most suitable type of business loan for entrepreneurs or small business owners who are likely new to the market. Start-up loans are designed to support business owners to start off their business smoothly. You can get up to £100,000 with no rigid rules and regulations, no lengthy paperwork, nor any tight repayment plans.

The purpose of a start-up business loan is merely to support small businesses in the United Kingdom. So, to fulfil that, the British Government is providing loans and you can get an average of £5000 to £100,000 amount to support your business. Basically, startup funds for small businesses provide you with capital to invest in your company. You can use this amount for a variety of purposes, such as working capital or improvements such as business set-up, technology and staffing, business acquisitions, real estate purchases, and so on.

Features of Start-up loans

Getting a loan is easier but with 24/7 Business Finance, you will enjoy additional perks. Such as

  • Competitive Interest Rate

A good interest rate can be expected if you are financing between £10k and £500k. We offer an annual interest rate of 6%. Repayment could be carried out from one to five years, which is more long-term and competitive.

  • Faster Results

We give you faster results than a high-street bank. You may also find that interest rates are better with us. Errors in your application may slow things down no matter which lender you choose – so make sure you thoroughly fill out all the required information when you apply.

  • Flexible Payment Options

Start-up businesses do not always have cash in the bank from the start. We accept bi-monthly or quarterly payments which will definitely alleviate your stress. If you intend to repay your loan early, you can opt for that option. For further information contact us at [email protected]

How start-up loans can benefit your business?

Having a loan for your new business can help you grow your venture. The first few months of running a business can be stressful. In addition, it takes time to determine what your business’s short term and long-term funding needs will be but a startup loan is always a right option to start off with your business needs. Startup loan can benefit your business in following ways:  

  • We know that starting a business requires a lot of capital to afford initial expenses including inventory, real estate, equipment, payroll, hiring expenses, marketing costs, necessary technology and much more. So, a start-up loan could help you get started.
  • Startup loans can help you build a business credit. Having a strong credit history indicates reliability as a borrower and lowers investment risk for the lender. By taking out and paying back a smaller loan amount first, you increase the chance of being approved for a bigger loan.   
  • A startup business loan can help separate your personal wealth from your business’s finances. You don’t need to pledge any personal property for start-up loans. 
  • A startup business loan may be an alternative to seeking investor financing. By funding your venture with a traditional loan, you’ll have more leeway when considering partnerships. If you feel strongly about maintaining control over your business, applying for a startup loan might be a better funding option.

Eligibility Criteria for Startup Loan

Start-up loans prove best for entrepreneurs and small businesses to set up their business and meet the initial financial requirements of their business. To qualify for a Start-Up Loan, you must meet the following criteria:

  • Your business is/will be based in the UK
  • You have the right to work in the UK
  • You are starting a new business, or your business is less than three years old

 

You can Get a Start-up Loan with Bad Credit

Startup loans are granted based on the personal credit history of the business owner. This is one of the factors that contribute to startup business loans being such an accessible financing option for new businesses.

Even if you have a poor credit history, you may still be eligible. Before you commit to a startup loan, think about how your credit history has been affected in the past. If you have a history of late payments, you should think about whether you can afford the loan and meet the payment schedule. A business credit card can be an excellent fit for those looking to build credit because it provides access to financing as well as the opportunity to build credit for your business and you are not required to use it.

Why should you choose us!  

Having a loan for your new business can help you grow your venture. The first few months of running a business can be stressful. In addition, it takes time to determine what your business’s short term and long-term funding needs will be. So, 24/7 Business Finance will help you guide you through all the processes and will provide instant financial advice. Here are some benefits that you can avail yourself from getting a start-up loan from 24/7 business finance 

  • Flexible repayment terms
  • Free one-to-one mentoring for 12 months
  • The loan is unsecured
  • Support during the application process
  • A fixed interest rate of 6% per annum 

Communicate with our representative now and solve your financial distress. 24/7 Business finance is your sole choice because we help your business move forward and reach the heights of success.

Pros of a start-up loan

Although there are many advantages to receiving a startup business loan, the most important of which is having money to get your business up and running, there are also some disadvantages to consider.

 

Pros

●      A start-up loan will provide you with an adequate amount of money to initiate the working of your business.

●      You are not liable to share the equity of your business with the lender – meaning you can retain the ownership of your business.

●      A startup business loan can help separate your personal wealth from your business’s finances.

●      You can build business credit as your business would have a large cash infusion to afford inventory, expand operations, or afford marketing costs.

Bottom line

There are advantages and disadvantages to pursuing a startup loan, such as issues with ownership, eligibility, personal credit risk, and repayment costs.

Qualifying for a small business startup loan, on the other hand, could mean having money to start a company without the expectation of repayment from loved ones or investors who will want ownership in exchange for their investment. Before proceeding with this loan option, small business owners should weigh all factors.


FAQs 

  • How to apply for Startup Loan?
    • You are required to submit the initial application then you will go through a process where your business credit score and business documents are assessed and if you fall within the criteria your loan will be approved within no time.
  • How do startups get loans?
    • You can opt for start-up business loans like short-term financing for business purchases.
  • What happens if I miss a payment?
    • If you miss the payment it may affect your business’s credit rating. As the start-up loan is an unsecured business loan so it is completely up to you and your lender to make fair agreements in times of danger.
  • Can I choose a loan term for a start-up business loan?
    • Yes, you can choose a loan term which is usually between one to five years depending upon the agreement between you and your lender.
  • Is a start-up loan a grant?
    • No, a start-up loan is not a grant as you have to repay the amount over an agreed term of one to five years.
  • How much money can I apply for?
    • You can borrow up to £100,000, payable over one to five years, at a fixed interest rate of 6%.
  • Are there any rules on how to spend the loan amount?
    • No, there are no specified rules to using the loan amount. You can spend it on a wide range of expenses including, business set-up expenses, equipment, real estate, business insurance, marketing and promotional activities. It solely depends upon your business’s needs.

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