Startup Business Loans between £1k – £500k
We can help secure Startup Business Loans to accelerate your business growth | Start-up business financing with unparalleled flexibility
Everything You Need to Know:
- What is a start-up loan?
- Why choose us for your business start-up loan?
- How can I apply for a start-up business loan?
- What are the pros of startup business loans?
- Can I get a start-up loan with bad credit?
- Do start up loans require personal guarantees?
- Frequently Asked Questions
A startup loan is a type of loan designed to support new businesses that are less than 24 months old. Start-up loans enable budding entrepreneurs to meet key requirements such as: Funds required for the start-up or early stages of a new company.
Business start-up loans are usually unsecured, so you don’t need your valuable working capital as collateral. With start-up funds:
• Earn between £1,000 and £500,000
• Repayment over a period of 1-3 years
• Benefit from competitive interest rates
How to get a startup business loan?
Business owners can obtain start-up loans from traditional lenders such as banks or from alternative lenders such as online lenders and loan brokers. New businesses can find it particularly difficult to secure financing from lenders because they are perceived as “high risk”.
Limited trading history and lack of significant capital or collateral reduce the chances of approval. Fortunately, alternative funding providers are on the rise, giving startups more options than ever before. Startup loans for startups are available at:
- Online lender
Online lenders & Credit Brokers
Online lenders and loan brokers offer corporate financing options and make it easy for new businesses to get quick financing. Offering more choice and flexibility to startups at the click of a button, some lenders offer loans to companies with low credit ratings.
Applications can be completed entirely online, expediting the entire process and allowing access to funds in as little as 24 hours, as opposed to weeks for bank and government approvals.
Additionally, online lenders typically set very transparent fees and loan terms. So when you take out a loan as an entrepreneur, you know exactly how much you have to pay back and when you have to pay it back. Many lenders also offer a more personalized service, sending reminders via email or SMS when a deadline is approaching to help you manage your finances.
- high approval rating
- All credit scores welcome
- fast payout
For centuries, traditional lenders such as banks have been the preferred source of funding for businesses. Today, however, it is difficult for small businesses to secure funding through such traditional means, and even more difficult for start-ups to do so.
This is mainly because today’s banks tend to focus on larger corporate loans, impose strict application processes and stringent lending standards, and have low approval rates.
Applying to banks takes time. After submitting the relevant documents, you will need to schedule a follow-up or make an appointment with your nearest branch to discuss your application in person. It may take weeks or months to get a response, and it may take longer for the money to appear in your account. You can often borrow more money from the bank, but new businesses usually struggle because of their unproven business model and lack of sales track record.
- stringent lending standards
- need credit
- Payment varies from week to week
Can I get a startup loan during COVID-19?
Yes, it is possible to get a startup loan during COVID-19. However, the current economic climate can make it difficult to get startup loans from some traditional lenders. Nevertheless, lenders working with 24/7 Business Finance have continued to operate and provide loans despite the lockdown and pandemic. If you own a startup and are struggling to get credit for your new venture, we encourage you to consider our COVID-19 funding sources guide. This includes the financial products the state currently offers for startups, as well as alternative financing that makes sense as well.
What is the interest rate like on startup business loans?
Startup loan APRs typically vary depending on the lender and the type of loan product you apply for. Additionally, factors such as monthly income, creditworthiness, and age in business can all affect interest rates. Therefore, it is difficult to pinpoint exactly what the interest rate for startup loans will be. If you are unsure of the interest rate, be sure to ask the lender who agrees what the APR is.
Why choose us for your business start-up loan?
We recognize the difficulties startups face in raising early-stage capital. As a financial broker, we aim to provide fast and affordable online lending services, match you with the best lenders for your startup and its business, and provide all the help and support you need. We offer:
• Unsecured loan options:
Business loans and cash advance products for traders up to £500,000.
• Super-fast approval:
Get the money you need in just 24 hours.
• Responsible Lenders:
Lender organizations regulated and licensed by the Financial Conduct Authority
• Bad debt options:
Solution for new businesses with negative personal or corporate credit history.
• No registration or setup fees:
Apply online for free on our site.
• Trusted Account Manager:
Our team will do their best to find the best lender for your business needs.
Am I eligible for a start-up business loan?
At a minimum, your business must meet the following criteria to qualify for a startup loan:
- Trading must have been between 6 and 24 months.
- Entrepreneurs must be over the age of 18.
- The company must be registered in the UK.
At a minimum, your business must have been trading for 6 to 24 months to qualify for a start-up loan. Business owners must be over 18 and the company must be registered in the UK. We offer venture business loans for all companies up to 24 months old. Business credit checks are a necessary part of the application, but we want to help all businesses, including those with poor credit ratings, and lenders consider many factors before making a decision.
How can I apply for a start-up business loan?
New business owners can get between £1,000 and £500,000 in unsecured funds by simply applying online. Choose the amortization schedule that best suits your business needs over a 1- to 3-year period. Find out how to get a startup loan in the UK.
• Step 1:
First, you’ll be asked for some basic details to confirm the launch. Expect to include how much you want to borrow, average monthly turnover, company name, and number of trading months.
• Step 2:
The application then redirects further down the page and asks for contact information such as full name, company title, email address and phone number.
• Step 3:
After agreeing to the terms and conditions, click Accept Offer. From here, your application will be processed and reviewed by one of our account managers.
• Step 4:
Once you are contacted by a lender, discuss the terms of the contract. At this point, feel free to ask your lender any concerns you may have, such as the repayment schedule to make sure there are no nasty surprises along the way.
• Step 5:
Read the terms and conditions carefully, sign all relevant paperwork and send it back to the lender. You can then access your funds from your account within just 24 hours.
What can I use a start-up loan for?
Startup loans come in the form of personal or business loans and can be used to help businesses under 24 months. Loans can only be used for business matters such as: Equipment purchases, set-up costs, hiring, training, and many other purposes.
Practical uses of startup business loans
A business start-up loan is a cash injection that can facilitate business growth and success. Startups are quite costly in the early stages. Areas where this funding could help include:
From administrative costs to purchasing enough inventory to meet customer needs, building business ambitions comes at a cost. External funding can support initial costs.
The first few months of running a business can be the most difficult. New businesses often need a cash flow injection to keep things running smoothly. Without external funding, doing this alone can be difficult. New facility:
This is often one of the highest costs for starting a startup. Renting or buying the right property is critical to financial success, but it can often be one of the most difficult parts of starting a new business.
Advertising and Promotions:
Every company should invest in PR and advertising. This is very important for small businesses that need to build a growing customer base. This money can help you create and promote your brand and fund the launch of marketing campaigns to spread the word. Business website:
If you are starting a business, a business website is essential for attracting customers and promoting your brand. Without a web developer, creating a well-designed high-tech website can be expensive. This is another way of financing your business. Over 50% of his searches are now from mobile, so the site needs to be mobile friendly.
As your business grows, you need to hire more people. Onboarding new talent to your team can be financially taxing, but procrastination or investing too late can seriously hinder your business’ success.
Be careful when you borrow
The influx of cash into a business can be both exciting and overwhelming. It is important to use borrowed money wisely and effectively to avoid common business spending mistakes.
If possible, keep your business funds in a separate account from your regular business account and transfer them when you need them. Always maintain a good relationship with your landlord. Open and honest dialogue ensures a good relationship, even when issues arise about future repayment dates. Set up automatic repayments to never be late or miss a payment.
What are the pros of startup business loans?
Startup financing offers unlimited benefits for companies in the early stages of their business. Many UK companies would be forced out of business without the safety net of external funding. So, if you have confidence in your business plan, you can reap the following benefits:
• Preserve properties:
Unlike investor loans, business loans allow you to retain 100% ownership and business decisions.
• Build business credibility:
Borrowing money responsibly can improve a company’s credit rating. This will improve your credibility in the eyes of lenders and help you get more loans in the future.
• Unsecured loans:
As a newly formed company, it is unlikely that you have a large amount of assets to pledge as collateral. Unsecured Startup Business Loans have no collateral, so your equity in your business assets is safe.
• Growth of financial business:
Give your business the cash boost it needs to thrive.