Unless you’re thinking of starting your own business, there’s no reason you’d have heard about Start Up Loans, never mind understand the details and differences to other types of business finance. But now you’re chomping at the bit to start your new business and suddenly you’ve got lots of questions.

We’re here to support every step of your start up adventure. From the early days like today, when you’re dreaming big and Googling EVERYTHING, to setting up your business once your loan is approved, Transmit Startups can help.

What is a Start Up Loan?

A Start Up Loan is an unsecured personal loan that you use to start a business. Despite the name, you can apply before your business starts, or at any point in your first three years of trading.

  • ‘Unsecured’ means that it isn’t secured against any assets (unlike a mortgage, for example, which is secured against your home)
  • ‘Personal’ means that you are personally responsible for paying back the loan, even if it is for business purposes

A Start Up Loan is different to normal personal loans because you have to use it to fund your new business. You’ll have to provide evidence that this is how you’ll use it.

Who can get a Start Up Loan?

You are eligible to apply for a Start Up Loan if:

  • you’re over 18
  • you live in the United Kingdom
  • you have a business that is not yet trading or under three years old.

How do Start Up Loans work?

Start Up Loans work the same way as any other personal loan. You borrow a certain amount of money and agree to repay it over a fixed period of time.

You pay interest on what you’ve borrowed. The interest rate for Start Up Loans is just 6%, which is very competitive.

The difference is the information you need to provide when you apply. Because your loan is for setting up a business, you’ll need to provide quite detailed information about that business.

But once you’ve started your application, we can work with you to help you get the right information together, and to check your eligibility.

Who provides Start Up Loans?

Start Up Loans are provided by the British Business Bank, which was established by the UK Government, to make sure you can access funds to get your business off the ground.

Many high street banks won’t lend to brand new businesses, so it has been hard for new and aspiring entrepreneurs to get business finance.

The Government recognised this could stifle innovation and growth of the UK economy. So they set up a fund to offer affordable finance to people who want to start a business… people like you.

This fund is managed by specially appointed delivery partners around the country… people like us.

Together, we can make great things happen for your business.

Where can I get a Start Up Loan?

There are a number of organisations – called official delivery partners – who manage Start Up Loans on behalf of the government. Transmit Startups are the largest (and we think the best!). We lead the way with outstanding support and a streamlined system, making your loan application as pain-free as possible.

How do I apply for a Start Up Loan?

You can apply for a start-up loan online. If you choose to apply through Transmit Startups, you can start the application process here. Remember, this is a personal loan to be used for business purposes and, because we're a responsible lender, we'll run an automated credit search.

What happens when I apply for a Start Up Loan?

  1. Complete the registration form on the Transmit website and the application form on the Start Up Loans website – this is where the credit check is done
  2. Input your business information and upload any documents requested (see below). Or continue without them for now
  3. Get assigned to one of our Business Advisors. They will review your documents, help you perfect your paperwork and assess your application
  4. Get approved (fingers crossed!) and sign the loan agreement
  5. Receive the money in your bank account and get assigned to a mentor.

What do I need to get a Start Up Loan?

You’ll need to provide evidence of what you plan to do, how you’ll use the money, and your prediction about the profitability of your business.

We use this to assess whether it is responsible to give you a loan. The last thing we want to do is lend you money that you won’t be able to pay back.

We’re looking for solid business ideas, backed up with research about the market, and a realistic financial forecast. Read more in our article on the documentation you need for a Start Up Loan application.

How long does it take to get a Start Up Loan ?

It depends on how quickly you can provide the required information about your proposed business. If you have your business plan and financial projections prepared, it can take as little as 2 weeks from first enquiry to accessing your loan. However, it usually takes longer because most applicants require some level of support to get their information ready for their application.

Can I get help from the Start Up Loan delivery partner?

At Transmit Startups, we pride ourselves on providing unrivalled support for applicants.

As the biggest supplier in the country, we’ve worked with a lot of entrepreneurs, so we understand the challenges they face.

This wealth of experience informs the support we offer applicants.

  • Pre-application support – help to prepare your application, business plan and other documents
  • Support during the loan process – call your friendly personal loan advisor for updates on progress and with any questions you have
  • Post-approval support – after we’ve approved your loan, we help assign you to a relevant mentor to support your start-up journey.
  • Added extras – we’ve built a community of start-up owners for peer support and can help you with PR about your business

If you’re still brewing up your business idea, grab a cuppa and browse our Getting Started section for early advice on developing your concept.

Wonder how much you’d be able to borrow? Our easy-to-use loan calculator can tell you.

Download your Ultimate Guide to Starting a Business now, for free!