Finding a business loan that suits your business can be complicated because of the number of options available in the market, but whether you are looking for finance to grow your business or money to get your business started, there are lots of different providers you can approach. Start-ups and small businesses with little or no assets to borrow against, often find that open market borrowing is out of their reach and Government loans can bridge this gap with a focus on the longer-term benefits.
The Start Up Loans initiative provides government-backed personal loans for UK citizens to start a business. These government-funded loans are designed for new businesses, either in the planning stage or in the first twelve months of trading. These government-backed loans are unsecured personal loans with a fixed interest rate and a typical repayment term of between one and five years. The good thing about start-up loans is there are no application or early repayment fees, and the interest rate is fixed making it easier to plan repayments
Once a personal credit check is carried out, along with a series of other checks to validate personal information and bank account details the loan assessment will take into account the viability of the business. If you are well prepared, with a draft business plan or cash flow forecast available, the application can take about two to three weeks.