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Start Up Loans

Do you need funding help to bring your business idea to life? We have Start Up Loans available for new and early-stage businesses in the South and West Country.

We provide support and guidance throughout the application process to give our customers the best chance for success.

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SWIG's Start Up Loans Team

What are Start Up Loans?

A Start Up Loan is a personal loan for business purposes for a term of 1 to 5 years at a fixed rate of 6% per annum. Applicants must be aged 18 or over at the time of the application. A credit check will be completed.

SWIG Finance is part of a network of official Start Up Loans Business Support Partners across the UK who administer the scheme.
To learn more about Start Up Loans please visit their website, StartUpLoans.co.uk

 

Start Up loans are available to individuals that have a viable business idea but no access to finance. This includes businesses that are yet to launch, as well as those that have been trading for up to 36 months.

Is my business eligible for a Start Up Loan?

Start Up Loans Characteristics

  • ✓ For businesses trading for less than three years.
    ✓ Sole Traders, Limited Companies and partnerships are eligible.
    ✓ Loan sizes between £500 – £25,000 per applicant.
    ✓ Up to 4 applicants per business, with a maximum combined loan of £100,000 (£25k per person) permissible.
    ✓ You must be aged 18 years or over to apply
    ✓ Applicants must own at least 50% of the business concerned (joint applicants should have a combined ownership of at least 50%).
    ✓ You must have the legal right to remain in England for the duration of your loan term and the right to be self-employed.
    ✓ Existing customers can apply for further finance for up to 5 years.
Documents Required

– Personal Survival Budget
– Cashflow Forecast
– Business Plan

Amount & Term

£500 – £25,000 repayable up to 5 years

Interest Charge

Charged at 6% fixed per annum

Fees

There are no fees for accessing this service.

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Start Up Loan Calculator

Loan Amount
Term
Total Amount to repay
Monthly Repayments
Interest Rate
6%
Arrangement Fee

Disclaimer: This repayment calculator is designed to outline the monthly loan repayments and the total amount repayable for different loan terms. The actual amount payable may change depending on the agreed term and loan amount. Interest is charged at 6%.
Terms and conditions apply, Credit is subject to status, affordability assessments and credit checks.

Representative Example

For a Start Up Loan of £10,000 repayable over 5 years. 60 monthly payments of £193.33. Rate of interest 6% per annum fixed. Representative APR 6.18%. The total amount of credit is £10,000. Total interest payable £1,599.80. The total cost of credit £1,599.80. The total amount payable is £11,599.80.

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Do you need to borrow more than £25k?

We have Business Loans from £25k up to £250k available

Learn More about business loans

Need help or got a question?

We have a range of resources to help you.

Download our Guide

Download our Start Up Loan application guide

Download Guide

Visit Knowledge Hub

Here you will find practical tips and how-to guides.

Knowledge Hub

Got a question?

Give us a call today and we will answer any question you may have.

01872 227 932

Our knowledge hub has a range of resources to support your application.

Evaluating Your Business Idea
Cashflow Forecasting for Start Ups
Test Trading - The Dos and Don'ts
Personal Survival Budget - What is it?
9 Steps to Buying a Business
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Suzy Lowe, SWIG Finance Business Manager with Monika Killer, owner of The Haunted Bookshop

What our customers say…

“I applied for a Start Up Loan to fulfil my lifelong dream of owning a bookshop. From the get-go, my advisor Suzy was incredibly helpful and made the whole process a breeze. She made me believe in myself and my idea and was really encouraging throughout! 

I’m so excited to open my shop, thank you so much, Suzy and SWIG Finance!”.

Monika Killer
Founder, The Haunted Bookshop

Read the case study here

Apply for a Start Up Loan now

Application Form

Please complete the form below and a member of our team will be in touch to discuss your application. If you experience any difficulties with this form, please contact us on info@swigfinance.co.uk.

Please tick the box to indicate your consent to us passing your data to Start Up Loans. For more information please refer to our privacy policy.

Our decisions are made by people, not computers, which means that we lend by looking at the bigger picture.

Our business managers provide support and guidance throughout the application process to give our customers the best chance for success.

Frequently Asked Questions

You can see below the answers to our most frequently asked questions. If you have more questions, do not hesitate to contact us and we will be happy to help.

How do Start Up Loans Work?

Start Up Loans are personal loans for business purposes and are designed to help a business build its platforms and create a base for growth. These loans will normally be the only cash injection into the business and therefore are required to fund all the initial marketing, staffing, premises, and other business plans. 

The loans are offered as part of the Government’s Start Up Loan Scheme which is provided by the British Business Bank which manages the scheme. 

As these loans are for entrepreneurs who may not have even turned a profit yet, they are normally set as a repayment period of 1-5 years, with a fixed interest rate of 6% and no other charges. As this is a government-backed scheme, it aims to help grow businesses in the UK so here at SWIG Finance, we will help you decide how much capital you should borrow so that it grants your business enough time to be turning a profit.

What are the disadvantages of Start Up Loans?

  • Monthly Repayments will increase Break-Even Point
  • Criteria Restricts some Companies
  • The Loan Must be Paid Back!

What can Start Up Loans be used for?

The loan can be used for a variety of business expenses such as employees, equipment/machinery, stock, business premises, and marketing. Your business plan and cash flow forecast must include where you intend to spend the loan and what it will pay for, and the plan must explain how the loan will help you start and/or grow your business.

Can I get a Start Up Loan with bad credit?

Yes, having bad credit will affect you’re getting a Start Up Loan but it doesn’t make it impossible. Bad credit may result in you being offered less than what you were asking for, so it may also require you to have a really strong business plan with lots of evidence to back up your ideas to increase the trust of the lender.

Are Start Up Loans personal loans?

Yes, Start Up Loans are personal loans to be used for business purposes.

Are there any other fees?

There are no fees for accessing this service.

What are the Advantages of Start Up Loans?

  • Keep Control of your Business
  • Personal Finances are Protected
  • Build Business Credit
  • Requires No Security or Personal Guarantee
  • Low Interest
  • There are no fees for accessing this service
  • Requires a Strong Business Plan

What are the interest rates and fees for Start Up Loans?

For a Start Up Loan of £10,000 repayable over 5 years. 60 monthly payments of £193.33. Rate of interest 6% per annum fixed. Representative APR 6.18%. The total amount of credit is £10,000. Total interest payable £1,599.80. The total cost of credit £1,599.80. The total amount payable is £11,599.80.

What can Start Up Loans not be used?

For some activities, you will not be able to use the Start Up Loan to pay for. These are; repaying debts, education programs and other activities which don’t directly result in the sustainability of the business.

Do Start Up Loans require a personal guarantee?

Start Up Loans don’t require any assets to be used as security or collateral and we will not ask for a personal guarantee. These are government-backed loans, which means they are aimed at helping you grow your business with limited threats to your personal finances.