Benefits of Start-Up Loans

Start-up loans are a funding solution to help new businesses begin trading. Traditional business loans can be difficult to acquire within your first period of trading, as most lenders ask for a high turnover, or 12 months successful trading history. If you haven’t yet achieved this level, a start-up loan may be your best option.

Start-up loans are unsecured, so no assets will be held under the product, although a Personal Guarantee will be taken, making you personally liable for repaying the full loan amount plus the agreed interest amount. Start-up loans can give you access to between £500-£25,000 (subject to interest), made in payments over a period of one to five years. These payments will typically be regular, monthly payments of the total loaned sum plus your arranged interest fee.

    Start-up loans can be used for any business expenses. This can be anything from building up your working capital or purchasing equipment, to ensuring you never miss payments to a supplier, or to your staff. Maintaining cash flow is extremely important, especially for a new business, as you begin to make commitments to different expense payments on a monthly basis. A strong working capital cycle, and a consistent cash flow will allow this to happen, and will benefit you greatly.

Once an application has been submitted to our panel of lenders, a decision will be made within 24 hours. The lender, the industry you trade in, and the state of the market at the time can all affect the turnaround time of the process. Funds can be transferred within 24 hours of approval, although typically it is within 72 hours.
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