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.
What are Start Up Loans?
The Start Up Loans Scheme is a government-backed Scheme that provides funding and support for new and early-stage UK businesses.
It offers unsecured, fixed-interest personal loans for business purposes, helping individuals start or grow a business when access to traditional finance may be limited.
The Scheme promotes entrepreneurship across the UK, supports job creation, and has a transformative impact on people who want to build a business, but may otherwise
struggle to secure funding.
A Start Up Loan is a personal loan for business purposes for a term of 1 to 5 years at a fixed interest rate of 7.5% per annum. Applicants must be aged 18 or over at the time of the application and a credit check is required.
Is my business eligible for a Start Up Loan?
Start Up Loans Features
✓ 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.
✓ Unsecured personal loan for business purposes: no collateral, assets, or guarantors are required.
✓ Applicants must own at least 50% of the business concerned (joint applicants should have a combined ownership of at least 50%).
✓ Existing customers can apply for further finance for up to 5 years.
✓ Applicants receive free support throughout the application process.
✓ Successful applicants can receive up to 12 months of free mentoring and support after receiving their first loan.
✓ Access to a range of business templates and guidance to support business planning and development.
Additional information
– eligibility does not guarantee approval, and all applications are assessed on an individual basis
– a credit check is required as part of the application process
Subsidy control rules apply:
– for applicants based in Great Britain, the loan counts towards the £315,000 Minimal Financial Assistance (MFA) limit over a rolling period of 3 fiscal years.
– for applicants based in Northern Ireland, EU de minimis limits apply where an activity falls within the scope of the Northern Ireland Protocol.
Eligibility
✓ be aged 18 or over at the time of applying
✓ be a UK resident, with the right to work in the UK
✓ be starting a new business or have been trading for no longer than 60 months (5 years)
✓ have a business based in the UK, with the majority of trading activity taking place in the UK
✓ be seeking finance for an eligible business purpose under the terms of the Scheme
✓ be unable to secure finance from other sources (self declaration is acceptable)
✓ demonstrate a viable business idea and the ability to repay the loan
✓ pass the Scheme’s credit checks, which form part of the application assessment.
✓ Sole Traders, Limited Companies and partnerships are eligible.
Start Up Loans are available to individuals joining a business partnership, buying an existing business, receiving Universal Credit, or starting a franchise, as long as they meet the eligibility criteria.
Documents Required
– personal identification
– business plan
– cashflow forecast
– details of business activity
– financial history or personal credit information (as required during assessment)
– any additional documents that may be required.
Amount & Term
£500 – £25,000 repayable up to 5 years
Interest Charge
Charged at 7.5% fixed per annum.
Fees
There are no fees for accessing this service.
Disclaimer: This repayment calculator is designed to outline the monthly loan repayments and the total amount repayable for different loan terms. The repayment amounts shown are examples and small differences may arise due to rounding, the actual amount payable may change depending on the agreed term and loan amount. Interest is charged at 7.5%.
Terms and conditions apply, Credit is subject to status, affordability assessments and credit checks.
Representative Example
Representative Example – Personal Loan for Business Use Only: £10,000.00 repayable over 60 months at 7.8% Representative APR*. 60 months at the AIR** of 7.5% p.a for fixed monthly payments of £200.45. Total cost of credit of £2,027.00 and total amount payable of £12,027.00. Finance subject to status and 18+ only.
*Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term.
**Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a daily basis.
Do you need to borrow more than £25k?
We have Business Loans from £25k up to £250k available
Need help or got a question?
We have a range of resources to help you.
Read our Guide
Read our Start Up Loan application guide
Visit Knowledge Hub
Here you will find practical tips and how-to guides.
Got a question?
Give us a call today and we will answer any question you may have.
Our knowledge hub has a range of resources to support your application.
What our customers say…
“The Start Up Loan made it possible to turn my idea of expanding the business into a reality, I couldn’t have done it without that initial support, and would have struggled to get the finance by other means.
The funding gave me the freedom to build the business properly from day one”.
Amelia Smith
Founder, The Old Foundry Coffee
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.
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?
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 7.5% 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?
Can I get a Start Up Loan with bad credit?
Are Start Up Loans personal loans?
Are there any other fees?
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 (Personal Loan for Business Use Only): repayable over 60 months at 7.8% Representative APR*. 60 months at the AIR** of 7.5% p.a for fixed monthly payments of £200.45. Total cost of credit of £2,027.00 and total amount payable of £12,027.00. Finance subject to status and 18+ only.
*Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term.
**Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a daily basis.
What can Start Up Loans not be used?
Do Start Up Loans require a personal guarantee?
The Start Up Loans scheme is operated by The Start-Up Loans Company, a company limited by guarantee, registered in England and Wales, company registration number 08117656, registered office Steel City House, West Street, Sheffield, S1 2GQ. A wholly owned subsidiary of British Business Bank plc, company registration number 08616013. British Business Bank plc is a development bank wholly owned by HM Government. It and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at www.british-business-bank.co.uk
