Get a startup loan the smart way

Startup loans are designed for new businesses with limited trading history. They often have different criteria, may require personal guarantees, and some come with mentoring or support services to help new businesses succeed.

Yes, most lenders want to see a solid business plan showing how you'll use the money and repay the loan. It doesn't need to be a massive document, but should cover your market, finances, and growth plans.

This varies widely. Government startup loans go up to £25,000. Other lenders may offer £1,000 to £500,000 depending on your business type, personal credit score, and what security you can provide.

You'll typically need your business plan, financial projections, proof of identity, bank statements, and details of any existing business assets or personal guarantees. Some lenders want to see evidence of industry experience too.

It's harder but not impossible. Some specialist lenders work with people who have credit issues. You might face higher interest rates or need to provide security, but options exist.

Government startup loans have fixed rates around 6-7%. Other lenders range from 5% to 30%+ depending on the loan type, your credit score, and the risk they perceive in your business.

Government startup loans can take 6-12 weeks due to their thorough process. Alternative lenders often decide within days or weeks. Online platforms can sometimes approve loans within hours for smaller amounts.

Most lenders allow you to use funds for equipment, stock, marketing, premises, working capital, or other legitimate business expenses. You usually can't use it to pay off existing debts or for personal expenses.

This depends on the loan type. If you've provided personal guarantees, you're personally liable for the debt. With secured loans, lenders can claim against your assets. Government startup loans have support services to help struggling businesses.

Grants don't need to be repaid, making them attractive, but they're competitive and often have strict criteria. Many startups use a mix of grants, loans, and investment to fund their launch.