Personal loan for business purposes. Current applicants may be eligible when they are starting a new UK business or have been trading for up to 60 months, subject to the provider's credit, affordability and viability checks. Loans issued before 6 April 2026 keep the interest rate in their own agreement; do not apply the current 7.5% rate retrospectively.
Direct answer
Start Up Loans are personal loans for business purposes. For applications under the current scheme, you can borrow £500 to £25,000 at 7.5% per year, fixed, repayable over 1 to 5 years.
- Loan amount
- £500–£25,000 per applicant
- Interest rate
- 7.5% per year, fixed
- Term
- 1 to 5 years
- Mentoring
- 12 months offered after approval
Section 01
Who can apply
- UK resident aged 18 or over.
- Starting a new business or trading for up to 60 months
- Be unable to secure finance from other sources, have the right to work in the UK, and meet the scheme's business-type and loan-purpose criteria.
- Personal credit checks, affordability checks and an assessment of the business plan and cash flow forecast apply.
- Up to four partners may each apply for up to £25,000, subject to a maximum of £100,000 for one business and the scheme rules.
Section 02
The application step by step
- 01
Register online
Create an account on startuploans.co.uk and complete your personal eligibility profile. Takes 10 minutes.
- 02
Submit a business plan + cash flow forecast
Templates are provided. The plan needs to be specific — what you sell, to whom, at what price, with realistic monthly numbers for 12 months.
- 03
Personal survival budget
A monthly breakdown of your personal income and outgoings. The assessor uses this to check the loan is affordable on top of your living costs.
- 04
Credit check & assessor call
A delivery partner (Transmit Startups, x-Forces, Virgin Money etc.) reviews your application and calls you to discuss. They are looking for realism, not perfection.
- 05
Decision and offer
If approved, you get a formal loan agreement. Sign it, and funds are usually in your account within 5–10 working days.
- 06
First repayment
Begins 1 month after disbursal. You can overpay or settle early at any point with no penalty.
Section 03
What it really costs
For a current example shown on the official repayment calculator, £15,000 repaid over 60 months at 7.5% fixed interest is about £300.57 per month and £3,034.15 total interest. Treat calculator illustrations as estimates and check the exact agreement before borrowing. The provider states that there are no set-up fees; late or default charges can apply under the loan terms.
Section 04
The catch nobody warns you about
It is a personal loan. If your limited company fails, the loan does not die with it — you are personally liable for the remaining balance. Treat the borrowing decision the same way you would treat any personal debt: would you take it on if you knew the business would not work? If the answer is no, borrow less.
Section 05
How to maximise your chance of approval
- Use the cash for clearly productive purchases (equipment, stock, marketing, working capital). 'Founder salary' and 'cover personal bills' are red flags.
- Be specific in your forecast — assessors see hundreds, and round numbers (£10,000 marketing, £5,000 'other') look like guesses.
- Show some skin in the game. Founders who have already invested some of their own money are taken more seriously.
- Apply through a delivery partner that specialises in your sector if possible (x-Forces for ex-military, BSEEN for student founders, etc.).
- Fix obvious credit-file issues first — register on the electoral roll, settle any small defaults, and check your file via Experian/ClearScore.
Section 06
Common rejection reasons
- Unrealistic forecasts (overstating revenue, ignoring tax/VAT).
- Personal credit issues — CCJs, undischarged IVAs, recent missed payments.
- Loan being used for refinancing existing personal debt.
- Insufficient explanation of how the money will be repaid if the business is slower to take off than forecast.
- Business model that breaches scheme rules (gambling, weapons, adult content, multi-level marketing).
Section 07
After you've got the loan
Successful applicants are offered 12 months of free mentoring. Use the adviser and mentoring support to test your forecasts, borrowing assumptions and early operating plan. The value of support will vary by the mentor match and your engagement.
Partner offers
Current reader offers
Review each provider's eligibility, conditions and terms before applying. UK Startup may receive a referral fee at no extra cost to you.
Business banking
Reader offerTide Business Account
£200 Cash FREE
Earn up to £200 only when you complete both milestones: £75 for eligible Tide card transactions and £125 for the separate Tide Instant Saver milestone.
REFER200New eligible Tide members only. The reward is conditional on both milestones; provider terms, eligibility and payment timing apply.
Business credit card
Reader offerCapital on Tap Business Credit Card
7,500 bonus points
7,500 bonus points after a completed qualifying card or cash transaction within 30 days of signing, subject to Capital on Tap’s current partner terms.
SETTINGUP18+, UK-resident qualifying company applicants. Credit subject to status and affordability.
18+ and UK requirements apply. Tide: Earn up to £200 only when you complete both milestones: £75 for eligible Tide card transactions and £125 for the separate Tide Instant Saver milestone. New eligible Tide members only. The reward is conditional on both milestones; provider terms, eligibility and payment timing apply. Capital on Tap: 7,500 bonus points after a completed qualifying card or cash transaction within 30 days of signing, subject to Capital on Tap’s current partner terms. 18+, UK-resident qualifying company applicants. Credit subject to status and affordability. We may receive a commission if you sign up; it does not change the provider’s offer or pricing.
Common questions