Funding that backs new businesses

✔ You’re starting a new business or have been trading for less than 36 months
✔ You need funding to cover start-up costs, stock, equipment or working capital
✔ You’re looking for a more personal, supportive approach to finance

✘ You need a grant or non-repayable funding
✘ You’re unable to make regular repayments
✘ You’ve been trading for more than 3 years
✘ You need funding of more than £25,000 per person (try a Small Business Loan)

Flexible funding for:

• Start-up costs
• Equipment and technology
• Stock and inventory
• Working capital
• Marketing and advertising
• Hiring your first employees
• Expanding into new markets

You can't use the loan to pay off debts, cover training or education costs, or invest in opportunities that aren't part of building a lasting business.

No, you don't put up any assets or personal guarantee as security. What's more, you don't have to pay any fees for the application or early repayment of your loan.

Usually, it takes about six weeks to get everything sorted, but it can be different for everyone. Once you send in your application, one of our Investment Managers will help you move things along.

We've noticed that the more you stay in touch and work with your advisor, the faster you'll get your loan.

Don't worry if your personal credit history isn't great – it won't automatically stop you from getting a Start Up Loan. But we do take it into account when we're looking at your application. We want to make sure we're lending responsibly, so we'll check how you've managed money before and if you can handle paying back the loan now.
 

Because of this, we can't lend money to people with some credit issues. These can include things like:

• You are filing for or currently bankrupt or on a Debt Relief Order (DRO)
• You have an outstanding Individual Voluntary Agreement (IVA) or Trust Deed

Just to let you know, each application is looked at on its own, and sometimes we might say no for other reasons related to credit. This is especially true if giving a loan might make it hard for someone to handle their money.

You can use your loan for lots of different things that will help your business, like buying equipment, getting stock, renting a place, or promoting your business.

But remember, you need to explain in your business plan and cash flow forecast how you'll use the loan to make your business better. You should describe what you'll do with the money and how it will help you start or grow your business.

You can't use the loan to pay off debts, cover training or education costs, or invest in opportunities that aren't part of building a lasting business.

The Open University provides a selection of free courses perfect for individuals starting their own business for the first time.

The courses provide rich information covering subjects such as:

• Entrepreneurship
• Career and Leadership
• Finance and Accounting
• Sustainability
• Project Management

Explore the courses.

Yes we do!

This 1-minute checklist helps you make sure you're ready to apply. It covers the key things you’ll need so you can apply with confidence.

✔ A clear business idea: Know what product or service you’re offering and how it will make money.

✔ A business plan: Include your goals, target market, pricing, and strategy.

✔ A 12-month cash flow forecast: Show how much money you expect to come in and go out of your business.

✔ Personal and business ID: Have documents ready to prove your identity and UK residency.

✔ A good understanding of your personal credit score: The loan is a personal loan, so your credit history matters.

✔ Know how much funding you need (up to £25,000): Be ready to explain how you’ll use the loan.

✔ Proof of affordability: We want to know the loan repayments are manageable.

✔ Be aged 18+ and a UK resident: You must live in the UK and be eligible to work here.

✔ Your business must be under 3 years old (or pre-launch): You can apply before you start trading or within 36 months of launching.

✔ Willing to accept mentoring support: Successful applicants get 12 months of free business mentoring.