Start Up Loan

Government-backed Start Up Loans

£11500
5year(s)
£
£

Borrow £500 to £25,000 per founder through the British Business Bank's Start Up Loans programme. Available to businesses that haven't started trading yet and those trading for up to five years.

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Befund

What is a Start Up Loan?

A Start Up Loan is a government-backed personal loan from £500 to £25,000 provided through the British Business Bank's Start Up Loans programme and designed to help you start or grow a business.

Whether you're looking for start up business funding or a business loan for a new business, funding is available to businesses that haven't started trading yet and those trading for up to five years.

Befund

Funding can be used for equipment, stock, marketing, working capital and more. You'll also receive support from a dedicated adviser to help prepare your application, plus 12 months of free mentoring once funded.

Start Up Loan at a glance

Start Up Loans are personal loans for business purposes. They are available to businesses not yet trading and businesses 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.

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Start Up Loan £500 - £25k

For businesses starting out or trading up to 5 years


  • £500 to £25,000 per founder
  • Up to £100,000 per business
  • Fixed 7.5% interest rate
  • Repayment terms from 1 to 5 years
  • No setup fees
  • No early repayment fees
  • No security required
  • 12 months of free mentoring
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Who can apply for a Start Up Loan?

Start Up Loans are available to people starting a business and businesses trading for up to five years. If you're looking for a business start up loan to launch a new venture, invest in growth or move your business forward, you may be eligible.

You may be eligible if you are:

  • Planning to start a business
  • Trading for less than five years
  • A sole trader, partnership or limited company
  • Looking to launch, grow or invest in your business
  • Applying on your own or with other founders

Funding for multiple founders

Each founder can apply for up to £25,000. Eligible businesses with up to four founders may be able to access up to £100,000 in total funding.

What can a Start Up Loan be used for?

  • Equipment
  • Vehicles
  • Stock
  • Marketing
  • Working capital
  • Website development
  • Technology
  • Premises costs
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Why founders choose Start Up Loans

Start Up Loan Bank Loan
Government-backed
Yes
Government-backed
Varies by lender
Business stage
Pre-start to 5 years
Business stage
Eligibility criteria varies
Funding available
£500 - £25k
Funding available
Funding limits vary
Interest rate
Fixed 7.5%
Interest rate
Rates vary
Dedicated support
Included
Dedicated support
Support levels vary
Free mentoring
12 months included
Free mentoring
Additional support varies
Security required
No security required
Security required
Security requirements vary

How does credit history affect a Start Up Loan application?

A credit check forms part of the assessment process. Applications are assessed on a range of factors, including affordability and an applicant's overall financial circumstances.

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Will a poor credit score stop me getting a Start Up Loan?
Do you carry out a credit check?
Can I apply if I have missed payments on previous borrowing?
Can I apply if I have a CCJ or default?
Will completing the form below affect my credit score?

What do I need to apply for a Start Up Loan?

You don't need everything figured out before you apply. If you have a business idea and a funding requirement, your dedicated adviser can help you prepare everything needed for your application.

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What documents will I need?
Do I need a business plan before I apply?
Do I need to be trading already?
Do I need previous business funding experience?
Do I need security or a guarantor?
How long does the application process take?
What if I'm not sure where to start?

How to apply for a Start Up Loan

1. Get Started

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

2. Meet your adviser

Receive support from a dedicated BEF adviser.

3. Prepare your application

We'll help you prepare everything needed for assessment.

4. Receive your funding

Once approved, access your funding and 12 months of mentoring.

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

Start your application

Why apply through BEF

Dedicated adviser support

Expert guidance throughout your application.

Help preparing your application

Strengthen your plans before assessment.

Trusted Start Up Loans partner

Helping founders access funding since 2012.

Support beyond funding

Free mentoring to help your business grow.

Ready to take the next step?

Start your application

Real founders. Real businesses. Real results.

    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

    Frequently Asked Questions

    Still have questions? Here are answers to some of the most common questions founders ask before applying for a Start Up Loan.

    Start your application
    Is a Start Up Loan government backed?
    What happens if I need more than £25,000?
    Can I get a Start Up Loan if I've already received one?
    What can I use a Start Up Loan for?
    What happens after I submit the form below?

    Start your funding journey with confidence

    Whether you're developing a new business idea or already trading, our team is here to help you explore your options and move forward with confidence. Completing our enquiry form won't affect your credit score.

    Complete this quick form. There's no credit check at this stage. We'll then 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.