business loans

Start Up Business Loans

If you’re looking to set up or grow your business from it’s early stages, then a start up loan could be the perfect funding solution for you to kick things off. 

Start your entrepreneurial journey, and make your idea a business reality with the help of a startup loan, apply today.

What is a start up business loan?

A start up loan is a type of business loan aimed to provide financial support to help people set up and get their business off the ground.

They are typically used to help businesses in their first two years of trading, a critical time for any business to survive and thrive. Understandably launching a new business will require funds, and whilst there’s a limited number of grants and funding options available, a start up loan can provide additional funding to get your business off to the best start.

What can I use a startup loan for?

The main purpose of a start up loan is to help get the business started, so all funds must go towards this objective. They are reasonably flexible and broad as long as it is for business purposes. 

Here are some typical examples;

  • Purchase of equipment
  • Purchasing company vehicles
  • Marketing i.e building a website, digital marketing etc.
  • Cash flow
  • For initial stock 
  • To lease a commercial property/unit

As part of your business plan you should consider an itemised shopping list to identify everything you will need, and spend, to get the business up and running.

What is required to get a startup business loan?

It is often viewed that the applicant will need to put funds in themselves, however this isn’t always the case. In most cases, this can increase your chances of securing a loan to show that you are injecting and investing some capital into the business too. 

Alternatively, family funds can also be used as a contribution. But don’t worry if you aren’t able to invest anything, our team of financial experts will discuss your options and potential lending opportunities in-depth.

  • You will be required to provide the following information, which again our team can help you with.
  • You will need to have a business plan with financial forecasts for a minimum of two years
  • Likely to need six months personal bank statements 
  • Experience in the industry is very important, and any cross over skills or experience are useful too. For example if an accountant wanted to start up a café they could have transferrable skills of managing finances.
  • An up to date CV would be required, which supports the evidence for the above point
  • Capability would be assessed, so you will need to convince the lender that you/your business should be backed
  • Is there anyone else that is going to help you start the business or lend experience too? This could be a big factor in the application (for example, if you haven’t run a restaurant but your parents have for years, their restaurant manager is retaining their position and you want to start up your own business with their guidance).

Am I eligible to get a start up business loan?

In most cases yes, you would be eligible for a start up business loan with the above documentation. The below criteria is also required;

  • You are aged 18 or over
  • You live in the UK
  • You are starting a new business, or your business is less than two years old
  • Your business is/will be based in the UK
  • You have the right to work in the UK
  • A business credit check forms a necessary part of the application
  • If this applies to you/your business then get started with your application today. 

Can I get a start up business loan?

Yes, as mentioned above if you meet the above criteria and have the appropriate documentation ready then you should consider applying for a business start up loan today. 

Start up business loans positively support thousands of people and businesses each year, with the number of people setting up their own business increasing each year.  

Over recent years new businesses have been set up and have gone from strength to strength as many industries are dramatically changing to meet consumer demands. Job roles and business types have adapted, with businesses setting up to support gaps in the new market.  

So, if you have an idea for a new business then surely it is worth a shot? Whilst some sectors have specific restrictions, you could make your business a reality with the financial support of a startup loan. 

How much can I get for a startup loan?

Government schemes can typically offer upto £25k with a start up loan. If an applicant needs additional funds then brokers like ourselves can look at banks and lenders who can offer £25k+, however this will require security. 

Rates can range from 6% to 9% on average, and terms can vary depending on the final lender.

How to get a start up business loan

The most important part of getting a startup loan is working with the right broker to identify the most suitable deal for you. Brokers have access to a much wider range of lenders that can provide you with the funds you need with the right terms. 

We’ve broken down the typical process of getting a startup business loan below;

  1.  Start by getting your business plan drafted, get your idea on paper. 
  1.  Then, move onto the financial projections and keep them within your business plan to evidence how the business will be profitable. 
  1.  Speak with a broker to identify most suitable lenders for your specific situation.
  1.  Prepare the proposal to start up lenders with the help and guidance of a broker. 
  1.  Brokers will then search to find the most appropriate offer (not always the best price) and will discuss this at length with you.
  1.  Together with the broker you will form the strategy and go ahead with the application and agree the deal. 
  1.   If the application is successful funds will then be released.

If it is not successful, brokers can try to explore other options and lenders, or perhaps a lower value loan, depending on your circumstances and the reasons why you may have been unsuccessful. 

The real benefit of a broker is that they can negotiate with more than one lender who can take a view on the application. As experienced finance brokers we help our clients through the entire process providing expert guidance and support along the way. We will also signpost any other forms or options of finance available at the time. 

Can I get a startup business loan with bad credit?

Yes, it is possible to still get a start up loan with bad credit. This depends on the severity of your credit issue. 

An early explanation and honesty around this will  help to guide the broker with their search for an appropriate lender based on your situation. 

It’s certainly worth still proceeding with your application and seeking the guidance from your broker on the matter.

Apply for a start up business loan with Hilton Smythe Finance

Here at Hilton Smythe Finance, we like to have a conversation with you to understand your situation and start up business plans. We take pride in providing real value and expertise to guide our clients through what can sometimes be a complex or unknown situation.

Please don’t be afraid of reaching out to us to seek advice and expert help to guide you through the entire application process.

Other types of Commercial Loans

Not sure what type of loan will be right for you? Don’t worry we offer a range of financial solutions for businesses in different situations, and for varying purposes.

Secured Business Loans

Use one, or multiple, assets owned by the business as a form of security to gain funds with a secured business loan. 

A commercial asset could be a property, furniture, company vehicles or any equipment. In the event of the business being unable to make any loan payments they could use the assets to recover the funds.

Unsecured Business Loan

In opposition to a secured business loan, an unsecured loan is used to access funds without using a business’ assets as security. Perhaps you're a startup and don’t have any business assets yet. Or simply don’t want to use assets as a form of security.

Get in touch with our friendly team today and we will work out the most affordable, hassle-free solution for you to meet your business needs and not leave you with financial headaches down the line.

Whether it's a secured loan or a quick unsecured loan, companies can benefit from a range of business loans for a variety of purposes and to support different situations.

Not sure what you need? Speak to us today and we will work out the most affordable, hassle-free solution for you to meet your business needs.

Other types of Commercial Loans: