We use cookies to improve your experience on this site. By viewing our pages, you give us consent to use cookies. Find out more.

What is The Start Up Loan Scheme?

Posted 1 months ago

What is The Start Up Loan Scheme?
Share this article:

Designed as a way to help start-ups that have begun trading, Start Up Loans are a form of personal created to support new business owners that have struggled to secure finance from traditional lenders. Provided by the Start Up Loans Company, borrowers are able to access between £500 and £25,000 payable over one to five years at a fixed interest rate of 6% per annum. 

How does it work?

The scheme is delivered through ‘Delivery Partners’ who work in partnership with The Start-Up Loans Company, a subsidiary of the British Business Bank, who administer the scheme. 

The loans are government-backed and currently charged at a fixed interest rate of 6% per year. Importantly, a start-up loan is not a business loan. Rather, it is an unsecured personal loan, assigned to the individual looking to set up a business. 

The loan must be paid back over a period of one to five years. As it is a personal loan, liability to pay back the funds lies with the loan recipient, which means even if your business fails, it’s down to you to pay back your funds.

Am I eligible?

The scheme is open to anybody who fulfils the application requirements. To be eligible for a loan, applicants must:

  • be 18 or over
  • live in the UK
  • have the right to work in the UK
  • be able to pass the administrating company’s credit checks
  • be able to show that they can afford to repay the loan
  • have a UK-based business that’s been fully trading for less than 24 months, or plan to start a UK-based firm.

While most business types are eligible for funding through the initiative, there are some exclusions. The scheme cannot support businesses associated with the following:

How do I apply?

You can apply via the government website, which will take you directly to the Start Up Loans company’s page, who administer the scheme. There, you will be able to start the applications process. There are no application fees or set-up fees, and you can go through the process entirely online.

You must provide several documents for review with your application, which play a big part in determining whether you are eligible to secure funding. These are your business plan, a cash flow forecast and a personal survival budget.

Author: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site.  


Advertised Equity Crowdfunding Pitch

Jobmate helps Small and Medium Enterprises (SMEs) manage tasks such as preparing invoices, scheduling meetings and complying with regulations through its application. The company asserts that its app is customisable and enables SME owners to have a work-life balance. It also aims to create a community of professionals that can cooperate, increase their work opportunities, and earn higher profits through the app. Jobmate is targeting 20,000 subscribers in year one and 650,000 by year five. The company will use the investment to take its product to launch through the latest innovative digital marketing, established networks and distribution partners.

Pitch Rated

78%

Overall

rating powered by

CROWD RATING™

pledged: 255% days to go: 4 investment: £382,889

Click here to view our full Equity Crowdfunding listing


Tagged: sme coronavirus news raising funds alternative finance



Be a contributor to our blog click here to contact us
Click here to sign up to our newsletter

0 comments

Log in to comment

We reserve the right to remove comments which are inappropriate and/or offensive.
Comments are not the opinion of Nextfin.uk. Please read the comment guidelines
  • Internet Business Awards Category Award Winner 2015
  • Hertfordshire Business Awards Finalist 2014

As seen in:

  • The Guardian
  • Financial Times
  • Yahoo! Finance
  • The Times
  • The Daily Telegraph