A clear look at what the scheme offers, what it costs, and whether it is right for you, before you apply.
A Start Up Loan is a government-backed personal loan for people starting or growing a business in the UK. It is run by the British Business Bank. Because it is backed by the government, it is designed to be straightforward and fair. Everyone pays the same fixed rate, whatever their credit history, and there is nothing to pay to apply.
It is built for new and early-stage businesses. You can apply for a first loan if your business has been trading for up to five years, and you can use the money for almost any legitimate business purpose. Because it is a personal loan taken out by the owner, it is the owners who apply, not the company.
You can borrow between £500 and £25,000. Where a business has more than one owner, each can apply, so up to four co-founders can raise as much as £100,000 between them. The loan is repaid over one to five years, and you can settle it early with no penalty.
The rate is fixed for the life of the loan, currently 7.5% a year, so your repayments never change. Every successful applicant also gets twelve months of free mentoring, which is valuable when you are finding your feet.
Applying means putting together a business plan and a twelve-month cash flow forecast, then going through an interview with an adviser before a decision is made. That preparation is where most applications succeed or fail. It is also where we can help.
Amount: £500 to £25,000 per owner, up to £100,000 per business
Interest: 7.5% a year, fixed for the whole term - Term: 1 to 5 years, no early repayment charge
Cost to apply: free
Support: 12 months of free mentoring
Eligibility: a UK business trading up to five years.
Full criteria are on the British Business Bank website.
Work out what a Start Up Loan would actually cost you, each month and over the full term. Enter the amount and the period, and the calculator does the rest.
This short assessment gives you an honest picture of where you stand and what to strengthen before you apply. It takes a few minutes, and it is useful whether or not you go ahead.
We provide structured assessment, preparation and guidance to help you decide whether a Start Up Loan, or any funding, is right for you. This support is free to founders. We are funded through partnerships in the wider business support ecosystem, not by charging people starting a business. That is what lets us focus on what is right for you, rather than on pushing you to apply.
Once you have worked out the cost and checked your readiness, the next step is a conversation. Tell us about your business and what you need the funding for. You will get straight, experienced advice on whether the Start Up Loan is the right route, and practical help to make your application a strong one.
Copyright - Goodman Corporate Consultancy Ltd
Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029 Registered in England and Wales.
Registered office: 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.
Goodman Corporate Consultancy Limited is an FCA authorised Credit Broker and not a lender.
We typically receive a payment (s) or other benefits from the finance provider if you decide to enter into an agreement with them depending on the chosen provider and their commission or incentive models. Different lenders pay different amounts depending on different commission models. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.
Goodman Corporate Consultancy Ltd is Authorised and Regulated by the Financial Conduct Authority under number 733340.
Goodman Corporate Finance is registered with the ICO no. Z1828753.
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