Frequently Asked Questions
What are Start-Up Loans?
Start-Up loans are loans aimed at entrepreneurs, aged 18 or over, who are living in England and looking for finance to start a business. The Start-Up Loans is a national initiative and is a government backed programme of finance, advice and support.
Who is eligible?
To apply for a loan you need to be aged 18 or over (at the time of application), a British Citizen or UK legal resident living in England and interested starting a business.
As the regulations for the loan could change in the future, if you do not meet the current criteria please register an interest and we will contact you if they change in the future.
Are there any citizenship restrictions on applicants? For example is this loan only available to British citizens.
The loan is available to anyone who is entitled to be in and work in UK (i.e. if an individual’s right to be in the UK expressly forbids them from working then they are not entitled to receive a loan, as the provision of the loan is for the purpose of starting up in business). Note also that, as business support is a devolved matter, Start-Up Loans are only available to applicants intending to start and operate their business from an address in England.
I am an International Student, living in the UK, can I apply?
Yes as long as your visa permits you to work in the UK, and your business plan is viable to allow you to repay the loan during the length of your stay.
How much can I borrow?
Loans are from £1000 up to £10000, with the final amount being determined by the business plan.
How quickly will I receive my loan?
If you send us all the correct documentation, once the business plan has been deemed viable, you will be sent documentation to sign, then we will be able to approve the loan and submit to the finance company within 2 working days. After this, the finance company will contact you directly, asking for a signed copy of the Fixed Sum Loan Agreement, a BACS form enabling them to transfer the money into your bank account, and a direct debit form to set up the repayments. Once you have completed these, and the finance company have received the hard copy in the post, they will transfer the money into your bank in approximately 7 working days.
What happens if my Business plan is not deemed viable?
You will be directed to your local Delivery Centre for their support.
What kind of loan is it?
The Start-Up loan is a personal loan, which means if 4 or 5 people from the same company apply for a loan, all are eligible for an individual loan up to invest in their business.
If I receive a Start-Up loan, what are the payback terms?
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.
Do I need a business account to receive a loan?
No – setting up a business account is not necessary, a personal account is fine.
If I already have a business set-up, can I still apply for a loan?
Start-up loans are accessible to anyone who had a business in its initial phase and it is less than 12 months since you started trading.
What else will I receive?
As well as the loan, business support, access to online community and mentoring, applicants will also be eligible to enrol in resources from a number of our Global Partners, all of whom will be announced on our website and Start Up Loans website, and communicated to you once you have received your loan. These global partners include Regus, PayPal, and Intuit.
Regus – 6 months free access to Regus’ Virtual Office Package and access to most of their business lounges across the world. In addition, applicants will also receive a free copy of the Start-Up Loans kit, which offers all the guidance you need to start a business, plus more than £500-worth of offers on products from business cards to websites, netbooks and work suits.
Intuit – 2 years of access to their online cloud accounting software.
PayPal – Reduced transaction fees for six months (from 3.2% to 1.4%)
Ebay -Three months free eBay store and no insertion fees
For information on the full list of corporate partner offers please visit the Start Up Loans website.
How long will the application process take?
If your form has been filled out correctly and we have all the documentation and evidence to back up your plan we will endeavour to have your loan approved within 5 working days, further documents will then be sent to you.
Will applicants be contacted for more details?
Yes – all applicants will be contacted for more details if required.
Who will be deciding who gets the loans?
Get Started will be approving loans.