Start-Up loan
What is a start-up loan?
A start-up loan provides funding to launch a new business or to grow an existing business that has been trading for less than a year.
If you are launching a new business, you may find it difficult to get finance from a traditional lender such as a high street bank as they will deem you too ‘risky’.
Alternative finance providers such as Funding Guru can therefore help by providing you with a cash sum to help you get started.
Thoughts from Matt
“Behind every great new business is grit, hard work, determination and – likely – financial backing.
The most profitable, sustainable and successful businesses are almost always built on firm financial foundations. Having had many successful businesses myself (and some not so successful), I know what it takes to build a truly successful, sustainable venture.
Talk to us today about taking out a start-up loan for your business so we can help you on your way.“
Matt Haycox
Founder and CEO, Funding Guru
How much can I borrow through a start-up loan?
At Funding Guru, we loan up to £100,000 to start-ups. Growth is the priority for any small business, so our loans are quick, easy and have no hidden fees.
Before applying, check you have the below:
- 0-12 months trading history
- Solid business plan in place
- Clear financial forecasts
How can I boost my chances of being accepted for a start-up loan?
To boost your chances of getting start-up finance, ideally you would demonstrate you have a:
-
Compelling business plan
Don’t worry if it’s not too comprehensive - at Funding Guru we can help you with this too -
Demonstrable need
for funding -
Strong, experienced team
with appropriate sector knowledge and expertise -
Clearly defined target audience
where there is a ‘need’ or desire for your product or service. -
Age and location
To qualify for a Funding Guru loan, you must be aged at least 18 and be based in the UK
What help can I get with a start-up finance package?
At Funding Guru, our packages are not just about giving you cash. It’s about giving you the vital foundations needed to grow a successful business.
We have access to a vast network of entrepreneurs, with expertise spanning a massive range of sectors, who are willing to give both funding and mentoring.
As well as giving you a lump sum, we’ll talk to you to understand your vision and strategy.
Our help includes:
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Mentoring
You’ll get guidance from established entrepreneurs so you can benefit from the lessons we’ve learned (and mistakes we’ve made) while building our businesses -
Business plan guidance
We can help you structure your business plan, making it sustainable and ‘investment-ready’ -
Grant support
If you are considering grant schemes from public sources, we can assist with your applications. Getting public funding can be complicated – you have a much better chance of success if you’re working with someone familiar with the process.
Eligibility Criteria – Are You Ready for Funding?
At Funding Guru, we don’t just look at numbers, we look at potential. To maximise your chances of securing funding, ensure you have:
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A Solid Business Plan
A clear roadmap outlining your business model, objectives, and revenue streams. -
Financial Projections
Well-structured forecasts that demonstrate profitability and sustainability. -
Market Research
A deep understanding of your industry, competitors, and target audience. -
Industry Experience (if applicable)
Relevant background or expertise that adds credibility to your venture.
Why Funding guru? More Than Just Financing
At Fundin Guru, we believe funding is just the beginning. Our comprehensive start-up finance package is designed to set you up for long-term success, offering:
-
Personalised Mentorship
Expert guidance from experienced business advisors to help navigate challenges and scale effectively. -
Access to an Exclusive Entrepreneur Network
Connect with like-minded founders, investors, and industry leaders. -
Strategic Business Consultation
Get tailored advice to refine your business model, optimize operations, and drive growth. -
Financial Planning Support
Expert assistance in budgeting, cash flow management, and securing additional capital when needed.
What can a start-up loan be used for?
A start-up loan can be used for any business-related purpose. Below, we give some examples.
Buying stock
Renting or purchasing a premises
Boosting your cash flow
Taking out advertising to promote your goods or services
Recruiting staff
Creating a website
Can I get a start-up loan with bad credit?
If you have a chequered credit history, don’t despair! We can still often help you.
We lend based on your vision as well as history. If your personal credit rating is below ideal or you have no collateral to act as security against the loan, you could still join our hundreds of satisfied customers.
If you borrow responsibly, this will help you build a relationship with a lender and stand you in good stead for receiving further funding in the future.
Many UK small and medium sized firms (SMEs) rely on finance to grow their operations. This is especially true during periods of economic uncertainty.
As the table below shows, the amount loaned to UK firms during the peak of the Covid-19 pandemic in 2020 doubled from previous years.
External finance statistics for UK SMEs over the past few years:
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
Bank lending | £59.2bn | £57.3bn | £57.8bn | £56.9bn | £104.9bn | £57.7bn |
Asset finance | £17bn | £19bn | £19.5bn | £20bn | £16bn | £19.9bn |
Marketplace lending | £2.1bn | £2.9bn | £3.4bn | £4bn | £4bn | £4.1bn |
Source: British Business Bank / FLA / BoE
With the cost of living crisis continuing to put pressure on households and businesses across the UK in 2023, it’s likely many businesses will consider external funding to help them keep pace with rising costs and ride out potential weaker consumer demand.
The UK is a nation of entrepreneurs. A net total of 56,448 new businesses were registered in the first three months of 2022, according to the latest government statistics.
It’s important the UK encourages entrepreneurs wherever it can, and this is where start-up funding can help.
In total, there are more than 4.5 million businesses in the UK. These companies are helping solve some of society’s most concerning issues, such as climate change and social injustice, while keeping the UK economy competitive against global players.
The below chart shows how the number of UK companies has soared in the past decade:
We take a thorough and inventive approach to start-up finance, often finding a business finance solution long after our competitors have given up.
Frequently Asked Questions
The time it takes to apply for a start-up loan depends on the lender. In general, it can take anywhere from a few days to several weeks. The process typically involves submitting a business plan, financial projections, and personal information. If you’re looking for a quick start-up loan, some lenders offer faster approvals, particularly for those with a strong credit history.
Interest rates on start-up business loans vary depending on the lender, your credit profile, and the loan amount. Most lenders offer fixed interest rates, making it easier to budget your repayments. It’s essential to compare different providers before you apply for a business start-up loan to ensure you get the best deal.
The amount you can borrow varies based on your business plan, revenue projections, and personal credit history. Many lenders provide start-up loans ranging from £1,000 to £25,000 per applicant, though some may offer more if your business can demonstrate strong growth potential.
Yes, it is possible to apply for a start-up loan with bad credit, but approval may be more challenging. Some lenders specialize in loans for individuals with a lower credit score, though you may face higher interest rates or additional requirements, such as a personal guarantee.
When you apply for a business start-up loan, you can typically request funding based on your business needs. Most lenders allow borrowing from a few thousand pounds up to £25,000 per person. If you need more funding, you might explore alternative financing options such as business grants or investment funding.
Like any financial product, start-up loans come with risks. If your business struggles to generate revenue, you may face difficulty in repaying the loan, which could affect your credit score. Additionally, some loans require a personal guarantee, meaning you’ll be personally liable for the debt if the business cannot repay it.
There are several benefits to applying for a start-up business loan, including:
- Access to capital to launch and grow your business.
- Fixed repayment terms for better financial planning.
- No need for equity dilution, unlike investment funding.
- Government-backed schemes may offer lower interest rates and flexible terms.
Many business start-up loans require a personal guarantee, meaning you’ll be responsible for the debt if your business cannot repay it. However, some lenders offer start-up business loans with no guarantor, though these may come with stricter eligibility criteria or higher interest rates.
Most lenders conduct a credit check when you apply for a start-up loan. However, some alternative lenders may offer no-credit-check business loans, typically requiring other forms of security or higher interest rates.
If you are on a visa in the UK, you may still be eligible to apply for a new business start-up loan, depending on the lender’s requirements. Some providers may require UK residency status or additional documentation proving your ability to repay the loan.
Contact Us
We’re more interested in your future potential than your past history. So if your business has a strong selling point, talk to us about kick-starting your growth with one of our start-up loans. Call us or contact us online.