Yes, if you are starting up your own business it is possible to get a start up loan.
I know from personal experience, that starting a business is the most challenging time for any budding entrepreneur, especially if you have little by way of personal or family funds to call on. Traditional bank finance is usually hard to obtain, as you have no trading track record. However, there is now an alternative – a start up loan.
A start up loan is aimed at any entrepreneur, who is a UK citizen, a UK legal resident, or anyone who is entitled to be in and work in UK, aged 18 or over, who is living in England. The Start-Up Loans is a national initiative and is a government backed programme.
A start up loan is from £1,000 up to £25,000, with the final amount being determined by a Business Plan and a Financial Forecast. These documents, together with a number of other forms must be submitted to one of the bodies supporting this initiative.
Once the Business Plan has been deemed viable, if your documentation has been filled out correctly and is adequately supported by evidence, such as quotes and estimates, most bodies will endeavour to have your loan approved within 5 working days.
The Start-Up loan is a personal loan, which means if 4 or 5 people from the same business apply for a loan, all are eligible for an individual loan up to invest in their business.
Applicants will be required to pay back the loan within one to five years at a fixed APR (annual percentage rate) currently 6.2%. Applicants can pay their loan off early without receiving any penalties.
Start-up loans are accessible to anyone who has a business in its initial phase and it is less than 24 months since you started trading.