If you’re launching a new venture in 2025, finding the right financial support can be a game-changer. Startup business loans offer a practical way to fund your operations while maintaining full control over your business.
In the UK, a range of lenders and government-backed schemes now provide dedicated start up loans designed to help entrepreneurs bring their ideas to life.
Whether you’re just starting or need extra cash flow to accelerate growth, this comprehensive guide will help you navigate your funding options.
From understanding eligibility to comparing the top loan providers in the UK, we’ve covered everything you need to make an informed choice.
What Are Start Up Business Loans?
Start up business loans are financial products designed specifically to support new businesses in their early stages. Unlike traditional business loans that often require a long trading history, start up loans are tailored for businesses that have been operating for less than two years, or even those that haven’t started trading yet.
These loans are usually unsecured, meaning you don’t need to offer business assets as collateral. However, personal guarantees are often required.
In the UK, many lenders, including government-backed schemes, provide fixed-term loans with reasonable interest rates and flexible repayment periods. The goal is to empower entrepreneurs with the capital they need to get their businesses off the ground.
Whether it’s for buying stock, marketing, hiring staff or managing cash flow, start up loans can offer crucial support during a business’s critical first steps.
Most providers also offer additional guidance, mentoring or financial tools to ensure responsible and sustainable business growth.
Why Might You Need a Start Up Loan for Your Business?
As a new entrepreneur, there are various reasons why a start up loan might be essential to your success. From initial product development to growing your team, accessing capital at the right moment can dramatically affect your business’s trajectory.
Common reasons for applying for a start up loan include:
- Purchasing essential equipment and inventory
- Renting office or retail space
- Covering initial marketing and branding costs
- Hiring staff or freelancers
- Investing in technology or software
- Managing cash flow while waiting for sales
Start up loans can offer a more structured and manageable form of funding compared to dipping into personal savings or borrowing from friends and family.
They also allow you to maintain full ownership of your business, unlike equity financing, which requires you to give up a portion of your company.
Furthermore, receiving a loan from a reputable provider builds your credit history and financial credibility, which can make future funding more accessible.
In many cases, lenders also provide free mentoring, business tools, and learning resources to help you grow your business wisely and sustainably, making these loans much more than just money in the bank.
Who Is Eligible for a Start Up Business Loan in the UK?
Eligibility for a start up loan in the UK can vary slightly depending on the provider, but most follow a similar set of criteria.
Typically, start up loans are available to entrepreneurs who have either recently launched a business or are in the process of doing so. These loans are often aimed at businesses that have been trading for less than 24 months.
General Requirements to Qualify
- You must be at least 18 years old
- You should be a UK resident with the legal right to work
- Your business must be based in the UK
- The business should be in its early stages (typically less than 2 years trading)
- A clear business plan and cash flow forecast are usually required
- Applicants must pass a personal credit check
Certain industries may be excluded depending on the provider, so it’s important to check the fine print. Many lenders also prefer applicants who can demonstrate business viability and a realistic plan for repaying the loan.
While a perfect credit score isn’t necessary, lenders will assess your financial responsibility to determine your ability to manage loan repayments reliably.
How Much Can You Borrow with a UK Start Up Loan?
The amount you can borrow through a UK start up loan depends on your business needs, eligibility, and the lender you choose. Generally, start up business loans range from £500 to £25,000 per applicant.
If your business has multiple founders, each person can apply individually, potentially increasing the total funding available.
Government-backed providers like the Start Up Loans Company offer loans of up to £25,000 with a fixed interest rate, often around 6% per annum. Repayment terms typically range from 1 to 5 years, allowing flexibility based on your financial forecasts.
Private and digital lenders may offer slightly higher amounts or shorter repayment periods, but they might also apply stricter credit checks or require faster turnaround times.
When estimating how much to borrow, consider both your startup expenses and your cash flow projection to ensure the loan fits comfortably within your budget and won’t strain your operations during repayment.
What Should You Consider Before Applying for a Start Up Loan?
Applying for a start up loan is a significant decision. While it can fuel your early growth, it also comes with financial responsibilities.
Here are key considerations before applying:
- Interest Rates: Know whether the rate is fixed or variable and how it affects total repayment.
- Loan Term: Shorter terms mean higher monthly payments but lower overall interest.
- Repayment Schedule: Check if repayments are monthly, quarterly, or customised.
- Personal Guarantee: Most start up loans require a personal guarantee.
- Credit History: Your credit score can affect approval and rates.
- Loan Purpose: Be clear on how you’ll use the funds.
Other important factors include:
- Business Plan Strength: A well-structured business plan can greatly increase your chances of approval.
- Financial Forecasts: Lenders want to see realistic income and expense projections.
- Support & Mentorship: Some lenders offer free mentoring and tools, which can be as valuable as the money.
Ultimately, a loan should support, not strain, your business. Ensure you understand the full terms, repayment obligations, and potential penalties before signing any agreements.
Top 13 UK Start Up Business Loans for 2025
1. Start Up Loans Company (British Business Bank)
The Start Up Loans Company is a government-backed initiative delivered by the British Business Bank, aimed at helping early-stage entrepreneurs get the capital and support they need to thrive.
If you’re starting a business or have been trading for less than 36 months, this scheme offers affordable funding combined with personalised mentoring and resources to guide you through your journey.
It’s ideal for founders who are looking for more than just finance, it’s a comprehensive startup support system.
Key Features:
- Fixed 6% interest rate per annum
- Borrow between £500 and £25,000 per applicant
- Repayment term of 1 to 5 years
- No early repayment or arrangement fees
- 12 months of free business mentoring
- Access to live webinars, online toolkits, and industry expert sessions
Eligibility Criteria:
- UK resident aged 18 or above
- Business has been trading for less than 36 months
- Right to work in the UK
- Must pass credit and affordability checks
- Unable to access finance from other sources
Pros and Cons:
| Pros | Cons |
| Low fixed interest rate (6%) | Only available to those unable to secure funding elsewhere |
| Free mentoring for 12 months included | Personal loan—not structured as a limited company loan |
| No hidden charges or early repayment fees | Must pass a credit check and affordability assessment |
| Access to business support, webinars, and founder networking | Limited to UK-based and early-stage businesses only |
Contact Details:
If you’re ready to apply or want to learn more, the Start Up Loans team offers multiple ways to support you:
- Phone Support: Call 020 7313 2002 (Mon–Fri, 10:00 AM to 2:00 PM) for questions or application assistance.
- Email Enquiries: Use the contact form at www.startuploans.co.uk/contact for personalised help.
- Online Portal: Explore eligibility, resources, and application steps at www.startuploans.co.uk.
- Mentor Access: Approved applicants gain exclusive access to 12 months of mentorship and founder webinars.
This startup loan is a practical, supportive option for founders needing both capital and guidance. It’s a strong foundation for turning early-stage business ideas into real success.
2. Funding Circle
Funding Circle is a UK-based peer-to-peer lending platform known for offering fast, flexible, and affordable finance options to limited companies and LLPs.
Designed to meet diverse business needs, whether it’s expansion, equipment purchase, or cash flow support, it provides quick decisions and competitive interest rates.
With no need for face-to-face meetings and decisions in as little as one hour, it’s ideal for SMEs looking for speed, convenience, and tailored loan amounts.
Key Features:
- Loans between £10,000 and £750,000
- Interest rates from 6.9% per annum
- Terms from 6 to 72 months
- No early repayment penalties
- Funds can be deposited within 48 hours of approval
- FlexiPay option for spreading business payments
Eligibility Criteria:
- UK-based limited company or LLP
- Must be actively trading
- Business and director creditworthiness required
- No outstanding CCJs over £250 in the last 12 months
- Valid UK bank account and business registration
Pros and Cons:
| Pros | Cons |
| Quick application and funding decision | Not available for sole traders |
| No impact on credit score when checking eligibility | Minimum loan starts from £10,000 |
| High funding amounts up to £750,000 | Higher interest rates for newer or riskier businesses |
| Option to spread supplier payments via FlexiPay | Personal guarantee may be required |
Contact Details:
Funding Circle’s support team is based in the UK and offers full guidance from application to repayment:
- Phone: 0203 308 9190 (Mon–Fri, 9:00 AM to 6:00 PM)
- Email: contactus@fundingcircle.com
- Website: www.fundingcircle.com
- Application Portal: Online eligibility check in 30 seconds and application in under 10 minutes.
With its speed, flexibility, and broad loan options, Funding Circle is a strong option for businesses ready to grow quickly without the red tape.
3. HSBC Start Up Loans
HSBC offers flexible small business loans ideal for startups looking to finance working capital, asset purchases, or expansion needs. With a minimum loan of £1,000 and terms extending up to 10 years, it caters well to a range of early-stage business requirements.
Competitive APRs, repayment holiday options, and no requirement to hold a business current account make HSBC an accessible lender for entrepreneurs across the UK.
Key Features:
- Borrow between £1,000 and £25,000
- Interest rates from 8.6% to 11.3% APR (fixed)
- Loan terms of 12 months to 10 years
- Option to defer repayments for 3 or 6 months
- No arrangement or early repayment fees
- Track your loan online via Business Internet Banking
Eligibility Criteria:
- Must be a UK business owner aged 18 or older
- Business must be registered in the UK
- Good personal and business credit history
- No requirement to open a business account (in most cases)
- May require security depending on loan amount and risk profile
Pros and Cons:
| Pros | Cons |
| Flexible repayment terms up to 10 years | Interest accrues during repayment holidays |
| No business account required for most loans | Early repayment rebate deduction (1 month + 28 days interest) |
| Option to defer first repayment | Security may be requested based on application |
| Representative APR as low as 8.6% for higher amounts | Not all repayment options available through online applications |
Contact Details:
HSBC provides multiple support channels for business loan enquiries and applications:
- Phone: 03457 60 60 60 (Mon–Fri, 8:00 AM–8:00 PM; Sat, 8:00 AM–2:00 PM)
- Website: www.business.hsbc.uk
- In-Branch Support: Appointments available with Business Specialists across the UK
- Accessibility Support: Relay UK and other tools available via the Accessibility Centre
HSBC’s small business loans offer startups the flexibility and scalability they need, supported by one of the UK’s most trusted banks.
4. NatWest Start Up Loan Scheme
NatWest’s Start Up Loan Scheme supports small businesses with flexible funding options and a streamlined digital application.
Designed for startups and growing SMEs, their loan offering includes fixed interest rates, personalised quotes, and rapid funding, often within 24 hours of approval. It’s particularly helpful for entrepreneurs seeking straightforward terms and no early repayment penalties.
Key Features:
- Borrow from £1,000 to £100,000
- Fixed interest rate around 11.6% (variable APR 12.24%)
- Loan terms between 1 and 7 years
- Instant quote without affecting credit score
- No setup or early repayment fees
- Online calculator for custom repayment planning
Eligibility Criteria:
- Must be a UK-based business owner aged 18+
- Business must be registered and operational in the UK
- Good credit history and stable income required
- Open to new and existing NatWest business customers
- May require director’s guarantee or security based on loan size
Pros and Cons:
| Pros | Cons |
| Personalised rate with no impact on credit score | Higher APR for smaller or shorter-term loans |
| Funding can be received within 24 hours | No repayment holidays allowed |
| Borrow up to £100,000 | Fixed interest only; no flexible rate options |
| No fees for setup or early closure | Tranche-based funding not supported |
Contact Details:
NatWest makes it easy for customers to explore and apply for business loans:
- Phone: 0345 711 4477 (Mon–Fri, 9:00 AM–5:30 PM)
- Website: www.business.natwest.com
- Live Chat: Available via Cora, their digital assistant, for quick queries
- In-Branch Support: Speak with business advisors across NatWest branches
With transparent pricing and fast access to funds, NatWest’s startup loan is ideal for founders looking to scale with confidence and control.
5. Lloyds Bank Start Up Loans
Lloyds Bank offers a range of flexible small business loans suited to startups looking to invest in equipment, expand operations, or stabilise cash flow.
Whether you’re seeking a secured or unsecured option, Lloyds provides clear terms, a straightforward application process, and support for businesses with turnover under £3 million. Fast funding and optional fixed or variable interest rates make it a trusted name for new ventures.
Key Features:
- Loans from £1,000 to £50,000 (more upon application)
- Fixed interest rate at 11.2% APR representative
- Loan terms from 1 to 5 years
- No arrangement or early repayment fees
- Fast funding within 48 hours of approval
- Clean Growth Financing available for sustainable businesses
Eligibility Criteria:
- UK-based sole traders, partnerships, or limited companies
- Applicant must be 18+ and authorised to borrow for the business
- Purpose of loan must be strictly for business use
- Security may be requested based on loan size or applicant risk
- Existing finance details and business background may be required
Pros and Cons:
| Pros | Cons |
| No early repayment fees | May request business asset/security for approval |
| Quick loan approval and disbursement | Rates may vary based on risk and applicant profile |
| Option for both secured and unsecured loans | Business must meet specific turnover criteria |
| Online eligibility check without affecting credit score | Application may require detailed documentation |
Contact Details:
Lloyds Bank offers tailored support to business applicants through multiple channels:
- Phone: 0345 072 5555 (Mon–Fri, 8:00 AM–8:00 PM)
- Website: www.lloydsbank.com
- Online Application: Get an instant quote up to £25,000 without affecting credit score
- Branch Support: Speak to a local business advisor for in-person assistance
For startups seeking a dependable, well-structured loan backed by years of financial expertise, Lloyds is a smart and secure choice.
6. Barclays Business Start Up Loans
Barclays offers tailored business loans for startups needing flexible terms and digital convenience. With unsecured options up to £100,000, fixed interest rates, and fast online application tools, Barclays caters well to entrepreneurs seeking clarity, speed, and control.
Optional repayment holidays and green business financing are also available, making it a versatile option for modern founders.
Key Features:
- Unsecured loans up to £100,000
- Fixed interest rate with APR from 12.9% (representative)
- Loan terms from 1 to 10 years
- Six-month repayment holiday option
- Fast funding—typically within 48 hours
- Green loan discounts available for eco-focused assets
Eligibility Criteria:
- Must be a UK-based business or sole trader
- Aged 18 or older and authorised to apply on behalf of the business
- Must pass Barclays’ lending assessment and affordability checks
- Application requires trading accounts and business plan
- Business account with Barclays recommended but not mandatory
Pros and Cons:
| Pros | Cons |
| Fixed interest rates for predictable repayments | Higher APR compared to some competitors |
| Option for initial and mid-term repayment holidays | Interest accrues during any deferred period |
| Online application and fast loan decisions | Loan availability depends on business type and industry |
| Green loan options available with discounted interest | Collateral may be needed for loans above £100,000 |
Contact Details:
Barclays provides personalised assistance and self-serve tools for startup applicants:
- Phone: 0800 027 1321 (Mon–Fri, 8:30 AM–6:00 PM)
- Website: www.barclays.co.uk/business-loans
- Application: Start online via Online Banking or Barclays app
- Callback Service: Request a call from a Business Relationship Manager online
Barclays’ startup loans are ideal for entrepreneurs looking to balance control, flexibility, and long-term planning with reliable banking support.
7. Metro Bank Start Up Finance
Metro Bank provides flexible and relationship-driven financing options for startup businesses. With a focus on community support and face-to-face service, their business loans are designed to help founders access quick funding and personalised advice.
Whether you need capital to launch, scale, or digitise your operations, Metro Bank pairs lending with tailored mentorship through its network of Local Business Managers.
Key Features:
- Borrow up to £60,000 for eligible businesses
- Fixed interest rate of 9.6% APR (representative)
- Loan terms between 1 to 5 years
- No arrangement fees or hidden charges
- Daily interest calculation and monthly repayments
- Dedicated Local Business Manager support
Eligibility Criteria:
- UK-based business with turnover under £2 million
- Must have a Metro Bank Business Account
- Minimum 18 years of age and authorised to borrow for the business
- Good business plan and ability to repay
- Property or asset-based security may be required in some cases
Pros and Cons:
| Pros | Cons |
| Competitive fixed rate (9.6% APR) | Must hold a Metro Bank business account |
| In-person support from Local Business Managers | Limited to businesses with turnover under £2 million |
| Quick loan calculator and approval process | Security may be needed for some loan amounts |
| Designed specifically for startups and small-scale enterprises | No online-only application—requires some in-branch interaction |
Contact Details:
Metro Bank prioritises personal service and offers several ways to get started with your application:
- Phone: 0345 08 08 500 (Mon–Fri, 8:00 AM–6:30 PM; Sat, 8:30 AM–5:00 PM)
- Website: www.metrobankonline.co.uk
- In-Store Support: Walk into any Metro Bank branch and speak directly with a Local Business Manager
- Loan Enquiry: Available through your business banking dashboard or in person
If you value personalised guidance and a supportive banking experience, Metro Bank’s startup loan is a friendly and efficient way to fund your growth.
8. Tide Business Loans
Tide partners with Funding Options to offer government-backed Start Up Loans designed for new business owners. With access to over 120 lenders and seamless account integration, Tide makes it easy for entrepreneurs to apply, get funded, and track their repayments, all within a single app.
It’s a great solution for first-time founders who want simplicity, transparency, and added financial tools.
Key Features:
- Borrow between £500 and £25,000
- Fixed interest rate of 6% per annum
- Repayment terms of 1 to 5 years
- No early repayment fees
- Includes 12 months of free mentoring
- Apply directly through the Tide app or website
Eligibility Criteria:
- UK resident aged 18 or over
- Business must be trading for under 36 months
- Right to work in the UK
- Business must be based in the UK
- No use of funds for debt repayment, education, or investments
Pros and Cons:
| Pros | Cons |
| Competitive interest rate (6%) | Requires opening a Tide business account |
| Easy in-app application and tracking | Personal loan structure—not tied to business legal entity |
| Government-backed with mentoring included | Loan must be repaid even if business fails |
| Access to over 120 lending partners via Funding Options | Limited to businesses less than 36 months old |
Contact Details:
Tide offers fully digital support and access through its platform and app:
- Website: www.tide.co
- App Access: Available via Google Play and Apple Store
- Support Email: hello@tide.co
- Live Chat: In-app messaging available 7 days a week
With fast processing and free mentoring, Tide is ideal for founders seeking a streamlined, app-based experience backed by expert business support.
9. Cubefunder Business Loans
Cubefunder specializes in providing short-term business loans to UK SMEs, including startups. They focus on understanding individual business needs, offering tailored repayment plans, and providing funding solutions even to those who may have been declined by traditional lenders.
Key Features:
- Loan amounts from £5,000 to £100,000
- Loan terms between 3 to 12 months
- Flexible repayment schedules (daily, weekly, or monthly)
- No early repayment fees
- Personalized service with a dedicated account manager
Eligibility Criteria:
- UK-based limited companies trading for at least 3 months
- Minimum monthly turnover of £4,000
- Business owners must be over 18 years old
- Personal guarantee required
Pros and Cons Table:
| Pros | Cons |
| Flexible repayment options tailored to cash flow | Short loan terms may not suit long-term financing needs |
| Quick decision-making process | Personal guarantee required |
| Willingness to lend to businesses with poor credit | Higher interest rates compared to traditional bank loans |
| Dedicated account manager for personalized support | Limited to limited companies; sole traders not eligible |
Contact Details:
Cubefunder offers personalized assistance to guide you through the loan process:
- Phone: 020 3137 2417 (Mon–Fri, 9:00 AM–5:30 PM)
- Email: info@cubefunder.com
- Website: www.cubefunder.com
- Online Application: Apply directly through their website for a quick decision
Cubefunder’s commitment to understanding each business’s unique situation makes them a valuable partner for startups seeking customized financing solutions.
10. Starling Bank Business Loans
Starling Bank, a digital challenger bank, offers business loans designed for SMEs looking for straightforward and flexible financing.
With a fully digital application process and integration with their business banking services, Starling provides a seamless experience for tech-savvy entrepreneurs.
Key Features:
- Loan amounts from £25,001 to £250,000
- Loan terms between 1 to 6 years
- Fixed interest rates tailored to your business profile
- No early repayment fees
- Integration with Starling’s business current account for easy management
Eligibility Criteria:
- UK-based limited companies trading for at least 24 months
- Must have a Starling business current account
- Good credit history and financial standing
- Directors must be UK residents over 18 years old
Pros and Cons Table:
| Pros | Cons |
| Fully digital application and management | Only available to existing Starling business account holders |
| No early repayment penalties | Not suitable for businesses trading less than 24 months |
| Competitive fixed interest rates | Personal guarantee may be required |
| Quick decision-making process | Limited to limited companies; sole traders not eligible |
Contact Details:
Starling Bank provides comprehensive support through digital channels:
- Phone: 020 7930 4450 (Mon–Fri, 9:00 AM–5:00 PM)
- Email: business@starlingbank.com
- Website: www.starlingbank.com
- Online Application: Apply through the Starling Bank app or online banking portal
Starling Bank’s integration of lending with digital banking services offers startups a modern and efficient way to manage their finances and access capital.
11. Fleximize Business Loans
Fleximize is a UK-based direct lender offering unsecured and secured loans for startups and established businesses. With flexible repayment terms and loan top-ups, it’s particularly suitable for companies looking to borrow responsibly without long-term commitments.
Fleximize stands out for its focus on newer businesses, offering funding options even if you’ve only been trading for six months.
Key Features:
- Borrow from £5,000 to £500,000
- Loan terms from 3 to 60 months
- Unsecured loans up to £250,000; secured up to £500,000
- No early repayment penalties
- Top-up options available
- Personalised terms and support
Eligibility Criteria:
- UK-based business actively trading for at least 6 months
- Monthly turnover of £5,000 or more
- Personal guarantee required for all products
- Non-homeowners limited to £20,000 (with additional criteria)
- Must not be in significant arrears or have recent CCJs
Pros and Cons:
| Pros | Cons |
| Loans available for newer businesses (6+ months trading) | Personal guarantee required from owners or directors |
| Early repayment allowed with interest rebates | Only phone/email customer service; no app or physical locations |
| High funding limits for both unsecured and secured loans | Some regions (Scotland, NI) capped at lower limits for unsecured |
| Flexible options for repayment and top-ups | Secured loans may require property equity or charges |
Contact Details:
Fleximize offers dedicated business support through online channels and over the phone:
- Phone: 020 7100 0110 (Mon–Fri, 9:00 AM–5:30 PM)
- Email: info@fleximize.com
- Website: www.fleximize.com
- Loan Calculator: Available on-site to estimate repayments and loan term suitability
Fleximize is ideal for growing businesses with short trading histories that still want access to reliable, large-scale funding.
12. Virgin StartUp Loan
Virgin StartUp, a not-for-profit initiative by the Virgin Group, partners with the British Business Bank to provide government-backed Start Up Loans for entrepreneurs in the UK.
Beyond funding, it delivers post-loan support, free mentoring, and community networking. Virgin StartUp is known for its founder-first approach, helping businesses get off the ground and grow with expert guidance and flexible loan terms.
Key Features:
- Borrow between £500 and £25,000 per co-founder
- Fixed interest rate of 6% per annum
- Repayment terms from 1 to 5 years
- No early repayment fees
- 12 months of post-funding mentoring
- Access to founder community and business events
Eligibility Criteria:
- UK resident aged 18 or over
- Business must be new or trading less than 36 months
- Must be unable to secure funding elsewhere
- Right to work in the UK
- Must pass affordability and credit checks
Pros and Cons Table:
| Pros | Cons |
| Fixed low interest rate at 6% | Only for startups trading under 36 months |
| Free business mentoring for 12 months | Credit check required to qualify |
| No fees for setup or early repayment | Application can take longer due to review process |
| Strong community and networking opportunities | Personal loan structure, not under company name |
Contact Details:
Virgin StartUp offers founder-friendly support through their dedicated startup ecosystem:
- Phone: 0344 264 2600 (Mon–Fri, 9:00 AM–5:00 PM)
- Email: info@virginstartup.org
- Website: www.virginstartup.org
- Webinars: Free weekly sessions on funding and startup growth
With a strong support system and flexible terms, Virgin StartUp is perfect for founders looking for both funding and long-term business mentoring.
13. Capify Small Business Loans
Capify offers flexible financing solutions tailored for small businesses, including startups. With a focus on quick access to funds and a streamlined application process, Capify provides both unsecured business loans and merchant cash advances.
Their approach is ideal for businesses seeking short-term funding with daily repayment options.
Key Features:
- Loan amounts from £5,000 to £500,000
- Loan terms ranging from 3 to 12 months
- Daily repayment options to ease cash flow management
- Quick online application with decisions typically within 24 hours
- No early repayment fees
Eligibility Criteria:
- UK-based businesses operating for at least 12 months
- Minimum monthly turnover of £10,000
- Business owners must be over 18 years old
- Personal guarantee required
Pros and Cons:
| Pros | Cons |
| Fast funding, often within 24 hours | Short loan terms may not suit long-term financing needs |
| Daily repayments help manage cash flow | Higher interest rates compared to traditional bank loans |
| No early repayment penalties | Personal guarantee required |
| Suitable for businesses with fluctuating revenues | Not ideal for startups with less than 12 months of trading |
Contact Details:
Capify provides dedicated support to assist with your financing needs:
- Phone: 0800 151 0980 (Mon–Fri, 9:00 AM–6:00 PM)
- Email: info@capify.co.uk
- Website: www.capify.co.uk
- Online Application: Quick eligibility check available on their website
Capify’s flexible repayment structure and rapid funding make it a strong option for startups needing immediate capital to seize growth opportunities.
Conclusion
Choosing the right start up business loan in 2025 could be one of the most critical decisions for your venture’s future. With more options than ever, ranging from government-backed schemes to digital-first lenders, it’s essential to align your funding choice with your business goals.
Don’t just focus on loan amounts and interest rates; consider the added value, like mentoring, flexibility, and customer support. The providers featured in this guide cater to a wide range of needs and industries.
By understanding the terms and preparing a strong business plan, you’ll be in the best position to secure the funding that turns your vision into reality. The right loan is not just money, it’s momentum.
FAQs About Start Up Business Loans
Can I get a start up loan with bad credit in the UK?
Yes, some lenders will consider applicants with bad credit, especially if you have a strong business plan. Government-backed schemes may be more flexible than banks.
Are there any startup loans with no personal guarantee required?
Most UK start up loans require a personal guarantee. However, a few alternative lenders may offer options without one depending on your risk profile.
What’s the difference between a startup loan and a grant?
A loan must be repaid with interest, while a grant is non-repayable financial support. Grants are typically more competitive and limited in availability.
Can I apply for multiple start up loans at the same time?
Yes, but not from the same provider. Each lender has its own rules about concurrent loans, so check eligibility first.
Is a business plan required to apply for a start up loan?
Yes, most lenders require a business plan outlining your strategy and financial forecasts. It helps them assess the risk of lending to you.
How long does it take to get approved for a start up loan?
Approval can take anywhere from a few days to several weeks. Online lenders usually offer quicker decisions than traditional banks.
Do start up loans cover equipment and inventory costs?
Yes, most start up loans can be used for inventory, tools, technology, and other startup essentials. Always check the lender’s approved uses list.
