Start or grow your business

Start Up Loans

£11500
5year(s)
£
£

Borrow £500 to £25,000 to start or grow your business with a Start Up Loan.

Start your application
Befund

What is a Start Up Loan?

A Start Up Loan is a government-backed personal loan designed to help people start a new business or develop an existing business.

Delivered through the British Business Bank's Start Up Loans programme, it offers £500 to £25,000 of funding at a fixed interest rate, with repayment terms of one to five years. Successful applicants also receive 12 months of free mentoring.

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See how a Start Up Loan helped a new business

Starting a business can feel like a big step. Hear from a founder who used a Start Up Loan to help turn their plans into reality.

Start Up Loan at a glance

Start Up Loans are personal loans for business purposes. They are available to people planning to start a business and eligible businesses that have been trading for up to five years.

Business Enterprise Fund is an official Business Support Partner for the British Business Bank's Start Up Loans programme. We've been supporting applicants since the programme launched in 2012.

Not ready to apply? Talk to us
Start Up Loan £500 - £25k

For businesses starting out or trading up to 5 years


  • Borrow: £500–£25,000 per founder
  • Multiple founders: Up to £100,000 available
  • Interest rate: 7.5% fixed
  • Repayment term: 1–5 years
  • Security: None required
  • Arrangement fee: None
  • Early repayment fee: None
  • Mentoring: 12 months free mentoring
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What you need to know

Here's what you need to know about a Start Up Loan before deciding whether to apply.

What can a Start Up Loan be used for?
What will a Start Up Loan cost?
How quickly can I receive funding?
Can I repay my Start Up Loan early?
Do I need to provide security?
What support do I receive with a Start Up Loan?
What factors are considered when assessing an application?
How do I know how long my business has been trading?
Eligibility criteria
Befund

Why choose BEF for your Start Up Loan?

We're an experienced Start Up Loan partner

BEF has supported applicants through the Start Up Loans programme since 2012, helping new and growing businesses access finance.

You'll have support throughout the application

You'll have a dedicated adviser who can explain what's involved and help you understand what you need to prepare.

We're a not-for-profit lender

BEF is a Community Development Finance Institution. Our purpose is to help businesses access fair finance and support economic growth in the communities we serve.

Support continues after you receive your funding

Successful Start Up Loan applicants receive 12 months of free mentoring through the Start Up Loans programme.

How to apply for a Start Up Loan

1. Apply

Complete the form below. There's no credit check at this stage.

2. Talk to your adviser

We'll discuss your plans, explain what's involved and help you understand what you'll need for your application.

3. Prepare your application

You'll provide information about your business, finances and how you intend to use the funding.

4. Receive a decision

Once your application has been assessed, you'll receive a decision and, if approved, we'll explain the next steps towards receiving your funding.

Funding can be in place in as little as 3 to 8 weeks

Start your application

What our customer say

    5 out of 5 stars

    "The whole experience so far with BEF has been exceptional. Sanni has been mega helpful in explaining what we need to get done to pass us onto the next stage. This is a huge thing for me and both Sanni and Amber have been so patient! Thank you so much, fingers crossed for the next stage"

    Review by Laura Armytage
    Laura Armytage
    Google
    5 out of 5 stars

    "Julie was super helpful with supporting us with a startup loan for our business."

    Review by Joe Murray
    Joe Murray
    Google
    5 out of 5 stars

    "Habib has been a great help, he helped my partner secure a loan for a business start up 3 years ago and now he has helped me. Always proffesional and more than happy to help."

    Review by Daniel Paryazani
    Daniel Paryazani
    Google
    5 out of 5 stars

    "Worked with Julie and she made the whole process of applying for a Start Up Loan incredibly easy, what I imagined would be a headache was pretty straightforward thanks to her help! I would definitely recommend working with Befund, they're a great bunch of people who are genuinely invested in helping you."

    Review by Abby Cook
    Abby Cook
    Google
    5 out of 5 stars

    "I applied for the a start-up loan through BEF and work with Sanni Tait & Jane Cusse, who were brilliant throughout. They were efficient, supportive and extremely helpful all the way through the process. I wouldn't hesitate to recommend BEF to anyone who is looking to secure funding, especially if they are lucky enough to deal with Sanni & Jane."

    Review by Danny Harrison
    Danny Harrison
    Google
    5 out of 5 stars

    "Business funding done on a personal level. Excellent service from Christian and the whole team. Thank you!"

    Review by Bethany Hardwick
    Bethany Hardwick
    Google
    5 out of 5 stars

    "Rowan was nothing short of phenomenal throughout this whole experience. With the expansion of my gym to a larger premises, I knew we would need funding to create the space I wanted. From the very beginning, Rowan did everything she could to support. It is a long-winded process at the beginning, but anything I was unsure of or did wrong, Rowan corrected and kept me on track. We successfully received the full 20k we applied for, and it has transformed the business and helped us grow amazingly! couldn't recommend more!"

    Review by Josh Hall
    Josh Hall
    Google
    5 out of 5 stars

    "Julie made what I expected to be a complicated process, straightforward and simple. Her friendly approach and open and honest communication at every stage, made the whole experience a pleasure. Thanks for your support!"

    Review by Chris Hughes
    Chris Hughes
    Google
    5 out of 5 stars

    "Julie Micklethwaite has been amazing. She helped me access business start-up funding and made the whole process so much easier than I expected. She’s really supportive, easy to talk to, and explains everything clearly without making it feel complicated. I’m so grateful for her help and would definitely recommend her to anyone starting a business. Thank you Julie!"

    Review by Jenny Sharpe
    Jenny Sharpe
    Google
    5 out of 5 stars

    "Shannon Doherty kindly held my hand at each stage. Provided concise and easy to understand guidance to make the process as smooth as possible. Cannot fault the service provided"

    Review by Iain Plant
    Iain Plant
    Google
    5 out of 5 stars

    "Takes time when you not organised ;) Everything went smoothly from start to finish. Our admin team and business manager Habib were incredibly helpful offering plenty of advice and support. The initial paperwork is quite extensive but if you organise yourself and have your business plan in place it all works out. Thank you so much! Our journey begins now. :)"

    Review by Malgorzata Kosztowna
    Malgorzata Kosztowna
    Google
    5 out of 5 stars

    "I applied for a Government Start Up Loan Habib Karimi at the Business Enterprise Fund (BEF) supported me to submit my application. Explaining everything simply and making the process run efficiently. He was professional and supportive. Fantastic experience and I received the funds quickly. He ensured he checked all the details and that I was lending an amount my business could afford. Highly recommend Thanks Laura from Organise Your Life With Laura"

    Review by Laura Royston
    Laura Royston
    Google
    5 out of 5 stars

    "Habib Karimi at the Business Enterprise Fund (BEF) has been absolutely fantastic to work with. He was efficient, professional, and guided me smoothly through the whole process, making everything straightforward and stress-free. The support we received has made a huge difference to our business development. We’re really happy with the service provided through BEF and very grateful for Habib’s support – highly recommended!"

    Review by Tirhak Melka
    Tirhak Melka
    Google
    5 out of 5 stars

    "Julie Micklethwaite at the Business Enterprise Fund (BEF) has been absolutely fantastic to work with. She has now successfully secured two invaluable start-up loans for my business, and the difference this extra cash flow has made to our development is huge. Julie was efficient, professional, and guided me smoothly through the whole process, making everything straightforward and stress-free. We’re really happy with the service she provided through BEF and very grateful for her support – highly recommended!"

    Review by Daniel Harvey
    Daniel Harvey
    Google

    Start Up Loan FAQs

    Got questions before you apply? Find answers to some of the most common questions about Start Up Loans below, or talk to our team if you'd like to discuss your circumstances.

    Have another question? Contact our team
    Have another question? Contact our team
    Can I apply if I haven't started trading?
    How much can I borrow?
    Can I get a Start Up Loan with bad credit?
    How does the personal credit check work?
    What documents will I need to provide?

    Ready to apply for a Start Up Loan?

    Complete the form below to get started. There’s no credit check at this stage, and we’ll redirect you to the British Business Bank’s secure site to continue your application.

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    Loan example (representative APR)

    Representative Example - Personal Loan for Business Use Only: £10,000.00 repayable over 60 months at 7.8% Representative APR*. 60 months at the AIR** of 7.5% p.a for fixed monthly payments of £200.45. Total cost of credit of £2,027.00 and total amount payable of £12,027.00. Finance subject to status and 18+ only.

    *Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term.

    **Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a daily basis.

    These calculations are only for illustrative purposes and are not a substitute for professional advice.

    Your actual loan terms may vary depending on your circumstances.

    If you're not eligible for a Start Up Loan, we may be able to offer an alternative loan. Rates and terms will vary. Further information, and terms and conditions are available on request.

    Important legal information

    The Start Up Loans Company is a wholly owned subsidiary of British Business Bank plc. It is a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at 71-75 Shelton Street, Covent Garden, London, England, WC2H 9JQ.

    British Business Bank plc is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

    A complete legal structure chart for the group can be found at www.british-business-bank.co.uk.