Every business needs initial capital to start. Sadly, some businesses can find it difficult to access the finance they need to begin or expand. This is true of businesses owned by ethnic minorities.
One million of the UK’s nearly six million SMEs are owned by ethnic minority business owners – they generate around £74 billion each year, and employ three million workers according to research from Small Business Commissioner.
Despite this, minority business owners often struggle to access finance from mainstream banks and other financial services. This barrier can stem from a variety of factors, including location, lack of networking opportunities, or previous financial disparities.
Thankfully, there's a way to level the playing field. The government-backed Start Up Loans scheme is helping minority business owners turn innovative ideas into reality, driving social change and bringing diverse perspectives to the market.
To date, Start Up Loans have supported 110,699 businesses, with over 20% of those being owned by minority business owners. For minority business founders, they are often the stepping stone to bridging the gap between potential and success.
Whether you're just starting to shape your business idea or you're looking to grow your start-up, securing a Start Up Loan can help you flourish while contributing to the prosperity and resilience of your local community.
Key Features:
£11,000 loan repayable over 5 years. 60 monthly payments of £212.66. Fixed interest rate of interest 6% per annum. Total amount of credit £11,000.Total interest payable £1,759.60.Total cost of credit £1,759.60. Total amount payable is £12,759.60.
This is an illustrative example for a loan of £11,000. Loans of up to £25,000 are available from the Start Up Loans Company. Rates and terms will vary for other loan products from BEF should you not be eligible for a Start Up Loan. Further information is available on request.
Find out how much you could afford to borrow with BEF's Start Up Loan calculator.
Yes, you can. Start Up Loans are available to aspiring and existing business owners regardless of ethnicity, gender, and religion. Accessing a Start Up Loan could help take your idea or business to the next level.
Eligibility criteria includes:
BEF is more than just a place to borrow money; we're a trusted partner who really wants you to do well. We're all about helping people get the money they need to start their dreams.
So far, we've helped over 5,000 people start their journeys with £20 million in Start Up Loan cash.
Here's what we do:
Getting a Start Up Loan is a simple process:
Usually, our team of Investment Managers will help you finish everything up within six weeks after you apply.
Of course, you might have some questions. Here are some of the most common ones we get about Start Up Loans. If you have more questions, feel free to get in touch with us.
As a minority business founder in the UK, understanding and leveraging the Start Up Loan scheme can be a game-changer. It offers not just the financial backbone to support your business ambitions but also a network of guidance and advice to help steer your venture towards sustainable growth.
A Start Up Loan is here to help your start-up grow, but we get that every business is different. You can generally use the loan for things like day-to-day costs, premises, equipment, stock, marketing, bringing on new team members, or other ways to build your business. Still, we suggest explaining how you plan to use the money in your application, so it matches up with what the loan is meant for.
Usually, you'll need to show us your Business Plan, Cash Flow Forecast, Personal Survival Budget, and Personal Bank Statements from the last three months. Don't worry, one of our friendly Investment Managers will let you know if we need anything else from you.
We look at every application carefully, considering more than just your credit history. Even if your credit isn't perfect, it doesn't mean you're out of the running. We suggest talking with an Investment Manager about your particular case to figure out the best way to move forward.
