Loans for UK Start Ups
Got a great idea for a business and need some funding to get it off the ground?
A start-up business loan can help you realise your dreams by providing the capital you need to launch or to solidify your operations.
- Loan from £25k to £5 million +
- Trusted by 500+ UK business owners
- Same day decisions
- Bad credit accepted
- Flexible repayment terms
What Can a Start-Up Loan Do For Your Business?
Opting for funding at the start of your entrepreneurial journey can provide a wealth of benefits for your business that go beyond the money:
More Capital = More Options
Having more money in the bank gives you more options when starting your business, whether that’s expansion, new tech or hiring your A-Team.
Gain Expertise from Industry Experts
Funding Guru loans for start up businesses come with the added benefit of gaining insights from your investors.
Consolidate Your Operations
It’s okay to not have everything organised when you’re starting out in business - but if you want to grow effectively, your operations need to be streamlined first.
Improved Cash Flow
There will always be peaks and troughs in business - having solid cash flow helps you to remain afloat when things get rocky.
Build Business Credit Early
Taking out a start-up loan and repaying it responsibly helps establish your credit profile - opening doors to larger funding opportunities down the line.
Retain Equity in Your Business
Different to equity finance - start-up loans do not require you to sign away part of your shares - so you stay in the driving seat.
What Is A Start-Up Loan?
Start-up loans are the lifeblood of new businesses. They provide funding for businesses of less than three years old to help them grow from ‘start-up mode’ to established business operations. Some lenders (like Funding Guru) will even help businesses before they launch – unlike mainstream banks.
Typically used as a cash injection to improve operations, smooth out cash flow or buy additional stock – start-up loans provide the help your young business needs to get off the ground and to become self-sufficient.
Start-up finance is a type of unsecured business finance – meaning you don’t have to put up any collateral to gain funding, but you may be subject to higher interest rates.
Because secured loans involve collateral, businesses can typically access higher loan amounts, lower interest rates, and longer repayment terms. Secured loans are typically less expensive than unsecured loans.
Application Process for Start-Up Business Loans
1. 60 Second Online Application
You’re busy, we get it. Take a minute out of your day to fill out our online application form and we’ll go from there.
2. Business Plan Evaluation
Our team have worked with hundreds of start-ups, we’ll evaluate your application and understand your business’ potential.
3. Approval Within 1 Day
We won’t leave you hanging. You’ll know whether you’re approved for a start-up loan in days.
4. Access Funds to Fuel Growth
Once we have dotted the ‘i’s and crossed the ‘t’s - the secured funds will be with you in 14 days - and often sooner.
How Much Can I Borrow Through A Start-Up Loan?
At Funding Guru, we loan up to £100,000 to start-ups. We understand that growth is the priority for any small business, so our loans are quick, easy and have no hidden fees.
Before applying for a loan for your start-up, check you have the below:
- 0-12 months trading history
- Solid business plan in place
- Clear financial forecasts
How do start-up loans work?
Start-up finance is just like any other business loan – they’re just tailored for fledgling businesses that may need a bit more support to get them off the ground. Business loans typically follow the following process:
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Crafting your Business Plan:
Like any loan, you’re going to need to show how you can pay it off within the agreed time frame. -
Application for Funding:
Follow the simple steps outlined above and you’ll be on your way to securing funding -
Use the Secured Funding to Grow Your Business:
Use your start-up funding to grow your team, solidify your operations or skyrocket your marketing. It’s up to you. -
Pay Back Your Loan within the Agreed Time Frame:
We’re transparent about your loan terms before you sign. No hidden fees, no early repayment fees. Just funding that works for your growing business.
Eligibility Criteria: How Can I Get Accepted For A Start-Up Loan?
Gaining start-up finance can feel intimidating. To boost your chances of acceptance ideally, you would show that you have a:
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Demonstrable Need:
You need to show how funding is going to be instrumental for the next phase of your business (not just that it would be nice to have £100k in the bank). -
Strong, Experienced Team:
We want to see that we’re working with a team that has appropriate sector knowledge and expertise. Show off your A-players. -
Clearly Defined Target Audience:
Never heard of an ICP? Get to know them well. You should show there is a ‘need’ or desire for your product or service. -
Solid Financial Projections:
Put together well-structured financial forecasts that demonstrate the profitability and sustainability of your business. -
In-Depth Market Research:
You need to understand your industry, competitors, and target audience better than anyone else to gain a competitive advantage. -
Suitable 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 start-up finance 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 start-up loan packages include:
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 and develop 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.
Unsecured Business Loans vs Start-Up Loans: Know the Difference
Start up financing is a type of unsecured business loan – but there are some key differences, have a look at our summary below:
| Start-Up Loan | Unsecured Business Loan | |
| Quick Cash Injection | ✅ | ✅ |
| Transparent Repayment Terms | ✅ | ✅ |
| Join a Network of Entrepreneurs | ✅ | ✅ |
| Simple Approval Process | ✅ | ✅ |
| Can Offer Finance Pre-Launch | ✅ | ❌ |
| Business Plan Support | ✅ | ❌ |
| Requires Upfront Collateral | ❌ | ❌ |
| Loan Amounts Over £100,000 | ❌ | ✅ |
Why Funding Guru? More Than Just Start Up Financing
At Funding 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:
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Personalised Mentorship:
Receive expert guidance from experienced business advisors to help navigate the challenges of new business management and scale effectively. -
Access to an Exclusive Entrepreneur Network:
You’ll be joining a ready-made network of like-minded founders, investors, and industry leaders. -
Financial Planning Support:
Expert assistance in budgeting, cash flow management, and securing additional capital when needed. -
Decades of Knowledge:
We have been in your shoes. With Funding Guru, you have a partner with decades of industry experience, so you can navigate the complexities of business finance with insightful guidance.
Testimonials
Start-Up Loans Frequently Asked Questions
How long does the application for a start-up loan process take?
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.
What interest rates do you offer?
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.
How much can I borrow with a start-up Loan?
The amount you can borrow varies based on your business plan, revenue projections, and personal credit history. Funding Guru provides start up financing up to £100,000 – but the final loan amount will depend on applicants meeting the criteria outlined above.
Can I get a start-up loan with bad credit?
Yes, it is possible to apply for a start-up loan with bad credit, but approval may be more challenging. Some lenders specialise in loans for individuals with a lower credit score, though you may face higher interest rates or additional requirements, such as a personal guarantee.
How much money can I apply for?
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.
What are the risks of a startup loan?
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.
What are the advantages of a startup loan?
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.
Do startup loans require a personal guarantee?
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.
Can I get a startup business loan without a credit check?
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.
I am residing in the UK on a visa – am I eligible?
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.
Does Your New Business Require a Start-Up Loan?
