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.
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.
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
You can download templates for these documents via the Start Up Loans website
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.
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.
Do you need to borrow more than £25k?
We have Business Loans from £25k up to £250k available
Apply for a Start Up Loan now
We assess each business on its own merit. Click on the Apply Now button to start your application.
Download our Guide
Start Up Loan application guide
Tips & How-To Guides
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.
What our customers say…
“After 2 years the chance to expand my shop has been a massive achievement. The funding has allowed me to double my music school capacity. Something I would not have been able to do without the Start Up Loan.
Jo, my advisor, made the whole process much easier. She was so personable and believed in both me as a young entrepreneur and my business as a viable start up“.
Hollie-Anne Bangham
Founder, The Note Warehouse
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, and for the duration of the loan, to give our customers the best chance for success.
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.
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.