What a Start Up Loan is

A Start Up Loan is an unsecured personal loan for business purposes, provided through the Start Up Loans Company, part of the British Business Bank, and delivered via a network of delivery partners across the UK. The key distinction from ordinary business finance: you borrow in your own name as an individual, not through your business, though the money is intended to fund a business you own or plan to launch.

Because it’s a personal loan rather than a business loan, there’s no requirement for business trading history in the way a commercial lender would expect, no collateral, and no personal guarantee from a third party — the personal element of the loan is that you, the applicant, are personally responsible for repayment.

Who’s eligible

• UK residency: you must be a current UK resident with the right to work in the UK.
• Age: applicants must be 18 or over at the time of application.
• Business stage: starting a new business, or trading for up to 60 months (5 years), following the extension from the previous 36-month limit.
• Business location: your business must be based in the UK.
• Unable to secure finance elsewhere: a self-declaration that you can’t access finance from other sources — this isn’t independently verified, but is part of the scheme’s eligibility criteria.
• Credit check: a personal credit check is part of the application process, as this is a personal loan.

Each owner or partner in a business can apply individually, up to a combined maximum per business — see the figures below.

Current rates and loan amounts

Because loans are issued to individuals rather than businesses, co-founders can each apply separately. A team of three, for example, could in principle raise up to £75,000 between them through individual applications, though each application is assessed on its own merits rather than automatically approved because a co-founder has already been successful.

What the money can be used for

Start Up Loan funding is intended for legitimate business purposes, which in practice covers a wide range of costs: equipment and stock, marketing, website development, premises costs, and working capital to get a new business through its early months. It generally can’t be used to refinance existing personal debt or for purposes unrelated to the business itself.

As part of the application, you’ll need a business plan and cash flow forecast — the delivery partner supporting your application can typically help with both, particularly if you haven’t put one together before.

What comes with the loan besides cash

Alongside the loan itself, successful applicants receive:

• 12 months of free mentoring from an experienced business adviser
• Free templates and guides for business planning
• Access to exclusive business offers with a range of partner organisations

How to apply

• Check eligibility first, against the criteria above, before investing time in a full application.
• Prepare a business plan and cash flow forecast, which form the core of your application alongside your personal details.
• Apply through the Start Up Loans website or a regional delivery partner, who can offer application support along the way.
• Expect a personal credit check as part of the assessment process.
• Be realistic about the amount requested, matching it to your genuine business need rather than borrowing the maximum available.

Common mistakes

Useful resources

• Start Up Loans official site — startuploans.co.uk
• British Business Bank — british-business-bank.co.uk
• Our business loans guide — the wider landscape of business finance
• Our sole trader vs limited company guide — which structure fits your business