What every new business start up needs is finance – especially the sort that doesn’t need paying back. Ah deep joy. No, sadly that is probably not very likely to be the case, but with careful planning and getting one’s self organised, it is possible to obtain reasonable terms and conditions for repayment of a start up loan. They are basically personal loans put in place to assist new businesses to start up trading. Many folk planning to be business owners can sometimes struggle to raise adequate funding from more traditional banking organisations. To clarify, they are personal loans for business start up purposs rather than busines bank loans which have separate rules and purposes.
These start up business loans are unsecured and that means the lender does not demand the borrower puts his own house or other higher value asset up as security against default of the loan. These loans are provided through a specialist start up loan company which is funded by the UK goverment.
Loans of between £500 and £25,,000 are to be repaid over one to five years and they attract an fixed annual percentage of interest. The applicant is paired with an experienced business adviser who will support them with completing the applicaiton forms and overseeing how to present other necessary evidence. Another benefit of obtaining a business start up loan is the chance to have free mentoring for a twelve month period.