Start-up loans may be possible if your company is under 24 months old. You can use them for business-related expenses including equipment, setup, recruiting, training and more.
It can be difficult for companies with less than a few years of trade experience to be eligible for loans from traditional banks, but there are alternatives to consider.
If you're a start-up in need of funding and can only afford to do so by taking on debt, you'll have fewer options at your disposal than larger companies. The following are some possibilities to think about.
In this UK guide, we review the best start-up business loans today.
| Provider | Score | Details |
|---|---|---|
| 1. Tide | ★★★★★ | Learn More |
| 2. Capital on Tap | ★★★★★ | Learn More |
| 3. Fleximize | ★★★★★ | Learn More |
| 4. British Business Bank | ★★★★★ | Learn More |
| 5. UK Government | ★★★★★ | Learn More |
| 6. Clydesdale Enterprise Finance | ★★★★★ | Learn More |
| 7. Virgin Money | ★★★★★ | Learn More |
| 8. ClearFunder | ★★★★★ | Learn More |
| 9. Lloyds Bank | ★★★★★ | Learn More |
| 10. Royal Bank of Scotland | ★★★★★ | Learn More |
| 11. Yorkshire Bank | ★★★★★ | Learn More |
| 12. CubeFunder | ★★★★★ | Learn More |
Also Read: 11 Best Business Loans for Small Businesses in 2024
Best UK Start-Up Business Loans in 2024: The Full List
Provider | Loan Type | Min Loan | Max Loan | Max Term | APR |
|---|---|---|---|---|---|
1. Tide | Government-backed loan | £500 | £25,000 | 5 years | 6% (fixed) |
2. Capital on Tap | Business Credit Card | £1,000 | £250,000 | N/A | As low as 15.5% (variable) |
3. Fleximize | Flexiloan Lite (For businesses trading 6+ months) | £5,000 | £500,000 | 1 year | 1.9% – 3.9% per month |
4. British Business Bank | Government-backed loan | £500 | £25,000 | 5 years | 6% (fixed) |
5. UK Government | Government-backed loan | £500 | £25,000 | 5 years | 6% (fixed) |
6. Clydesdale Enterprise Finance | Business Loan | £25,001 | £10m | Up to 15 year term on variable rate, and 5 year term on fixed rate | Variable |
7. Virgin Money | Virgin StartUp Loan | £500 | £25,000 | 5 years | 6% (fixed) |
8. ClearFunder | Business Loan | £10,000 | £100,000 | 1 year | Variable |
9. Lloyds Bank | Business Loan | £1,000 | £50,000 | 25 years | From 11.6% (fixed) |
10. Royal Bank of Scotland | Small Business Loan | £1,000 | £50,000 | 7 years | 11.70% (fixed) |
11. Yorkshire Bank | Business Loan | £25,001 | £10m | Available up to 15 year term on variable rate and 5 year term on fixed rate | Variable |
12. CubeFunder | Flexible Business Loans | £5,000 | £100,000 | Flexible repayment plan tailored for your business | Variable |
1. Tide — Top Start-Up Business Loans Overall
Loan terms for Tide's Start-Up business loans (Government-backed loan) range from 1-5 years, with amounts of £500 to £25,000.
Tide was launched in 2015 and is mainly a business banking tool for SMBs to help them save time and money. But it also gives access to a number of business loans and cash management resources.
In addition, Cashflow Insights is Tide's platform to which you may link your company bank account.
Cashflow Insights leverages open banking to analyse your financial situation, revealing how much you can borrow and which financing choices are suitable for your company.
How about customer reviews? Overall, more than 64,000 users have given Tide a 4.8 rating on the App Store, while about 15,500 users have given it a 3.5 rating on Google Play. Tide has received a rating of Great on the customer review portal Trustpilot, with 4.3 out of 5 stars from more than 16,000.
Overall, Trustpilot reviews for Tide are mostly positive, with consumers praising the company's speed and ease of use. However, some customers have voiced frustration at the company's customer care response times.
How to Get
- Tide can integrate with your company's system
- Uses open banking to determine your loan eligibility before you apply
- Your credit score will not be affected by using checks
- You must provide basic company data, such as minimum trading
- To calculate net operating income, you'll need yearly sales
- Mention any possible collateral
- Discuss your current ratio of debt to available credit
2. Capital on Tap — Popular Start-Up Business Credit Card
While not technically a loan, a credit card can serve the same purpose. You are taking out a loan from a financial institution and repaying the money plus interest.
Capital on Tap is redefining how quickly applications may be processed by just requiring 2 minutes to complete the form, making immediate decisions.
Capital on Tap has established itself as a supporter of innovative ideas and a provider of excellent customer service, having backed over 65,000 enterprises so far. Its tiny size means that it understands what startups actually need.
How to Get
- Practical credit limits up to £250,000
- Rates as low as 15.5% APR (variable)
- Auto-sync with accounting software
- Upgrade for Avios points
- 1% cashback on all card spend
- No annual, FX, or ATM fees
- Free company cards with spend controls
3. Fleximize — Strong Start-Up Business Loans
The United Kingdom-based firm Fleximize helps startups and growing enterprises access capital. Fleximize makes it easy to apply for a loan despite how challenging it might be to be approved. In fact, the time between applying and receiving cash might be as little as 24 hours.
This level of service demonstrates a deep familiarity with the client's needs; most startups face time-sensitive issues that need prompt attention.
While most small company loans on the market need at least a year of trade history before approving an applicant, Fleximize is especially inviting to startups.
Since interest rate estimates are tailored to each business, the application and repayment processes are adaptable (with no prepayment penalties). A growing startup that has a track record of making its loan payments on schedule will have more access to capital and more favourable repayment arrangements.
How to Get
- You can get a loan of up to £500,000
- Terms of 3-12 months
- The minimum monthly rate is just 1.9 per cent
- A minimum of £5,000 in annual sales and a minimum of 6 months in business are requirements
- Unsecured & secured options
- Top ups & repayment holidays
4. British Business Bank — Trusted Start-Up Business Loans
To launch a new venture before it becomes big enough to be publicly traded, money is often the deciding factor. To help new firms get off to a good start, the British Business Bank has partnered with the Start-Up Loans Company to provide loans of up to £25,000, in addition to mentorship and coaching.
Contrary to popular belief, a “Start-Up Loan” is not a loan for a company but rather an unsecured personal loan. If your application is accepted, not only will you get financing, but you will also receive up to 12 months of free mentorship at no cost to you.
Having a solid business strategy in place is crucial when launching a company. Your organization's objectives, strategy, marketing and sales plans, and financial projections may all be found in the free business plan template. You may get a head start on your strategy by downloading our free template.
The Open University and Start-Up Loans have collaborated to provide a series of helpful, no-cost courses on various business-related topics. They aim to educate new business owners on the fundamentals of operating a company and cover topics such as accounting, finance, leadership, and management.
The British Business Bank provides interest-free loans to new firms with no prior track record of making a profit, and their rate of 6% per year is among the lowest we could find (fixed). Loans of £500 to £25,000 are available to new firms, with payback periods of up to five years.
Moreover, all selected candidates will receive a free year of mentorship. The typical borrower borrows a little over £7,200. The loan may be paid off early without penalty, and a cosigner isn't needed to secure it.
How to Get
- Annual interest rate is set at 6%
- No need for a personal guarantee
- The application process is free and no charges for paying off your loan early
- Having access to helpful business mentors
- Only open to companies that have been operating for less than three years
- A maximum of £25,000 may be borrowed
5. UK Government — Trusted Start-Up Business Loans
The government of the United Kingdom is extending an opportunity for financing with a repayment schedule to new firms in the United Kingdom.
So, only businesses with a short operating history (less than two years) will qualify for the loan.
In addition to the loan, the government will provide the firm with free coaching for a period of 12 months, which may make a huge impact, especially for individuals who lack trade expertise.
The government will also provide additional tools, such as templates and guidance, that may be useful in your pursuit of funds. The fact that it comes from the government is the loan's biggest perk.
Hence, you can be certain that no one is attempting to pull the wool over your eyes; all loan terms are completely open and straightforward to grasp. Interest rates and fees are clearly stated as 6% and won't change.
Moreover, the application procedure is often one of the most difficult parts of securing money. Here, however, the lender assists in the application process. Excellent for startups.
How to Get
- To help new businesses get off the ground, the government offers loans of between £500 to £25,000
- Unguaranteed, individual loans (unlike the Government Business Loan)
- Annual interest is set at 6%
- Enjoy flexible payment terms between 1 and 5 years
- There are no charges for either applying or prepaying
- You need to be a company headquartered in the United Kingdom that has been open for less than two years
6. Clydesdale Enterprise Finance — Best Start-Up Business Loans for Mid-to-Large Firms
For companies with a future chance of getting an IPO, as Monzo may soon, this loan provider gives funding for the early-middle growing phase.
Yorkshire Bank's parent company also controls the much larger commercial bank Clydesdale. If you get a loan from a major high street bank, you'll have the option of going in person to the branch for meetings and other business as needed. Naturally, this is not achievable with online lenders since you must call a helpline to get the ball rolling.
Due to the backing of the British government, this loan differs somewhat from the others. The UK government's Department for Business, Energy, and Industrial Strategy has guaranteed 75% of the loan. So, the loan's principal amount is subject to a government premium of 2%. (plus an arrangement fee).
Any new firm may apply for this money, even if they “have no security or lack appropriate security”, meaning they only have a business idea. Companies involved in government work, the military, insurance, mining, or social services are not eligible for participation.
How to Get
- Loan amounts range from £25,001 up to £10 million
- Up to 15-year term on variable rate, and 5-year term on fixed rate
- Option of fixed or variable interest rates or a mix of both
7. Virgin Money — Top Start-Up Business Loans
The value of receiving a Virgin Start-Up Loan goes beyond the dollar amount. Virgin realises this investment may do more for your business than just tide you through.
Virgin Money bank offers unusual levels of assistance for a lender, including mentors and a business hotline, along with funding. Virgin StartUp also facilitates expert meetings and offers marketing and advertising possibilities (being featured on its website, for example).
The fact that this loan is intended just for start-ups is perhaps its most appealing feature. In fact, you need not even have begun trading at this point. The average loan amount from Virgin is £10,000, so it's not like they're throwing away little change.
How to Get
- Get a loan of £500 to £25,000
- Money may be borrowed for 1–5 years at a fixed rate of 6% each year
- A special hotline and advice service for companies
- Choose a seasoned professional to advise you and help your company succeed
- Get exclusive discounts and deals from the Virgin Group
- The company must be in its infancy or have operated for less than two years
8. ClearFunder — Established Start-Up Business Loans
ClearFunder is unique in that it caters to the needs of each company rather than setting rigid standards, from micro-investments to sizeable small business credit.
All that is required is that the private corporation is headquartered in either England or Wales and be free from any bankruptcy or redundancy proceedings. Everyone, regardless of credit score, may apply, however, it will be necessary to demonstrate that you can afford the payments.
ClearFunder asserts to simplify and clarify business financing. The corporate vehicle purchase, business growth, restructuring, cash flow, equipment, and employee advancement are all eligible for loans.
ClearFunder, operating out of Windsor, offers both rapid online quotations and adjustable payback arrangements. “All conditions are considered” is a promise made on their website.
How to Get
- Borrow between £10,000 & £100,000
- Requests for annual percentage rates may be fulfilled
- Day-to-day repayment flexibility allows you to pay more when funds are available
- A one-time charge paid at the time the loan is originated
- There will be no penalties for prepayment
9. Lloyds Bank — Best Fixed-Rate Start-Up Business Loans
Lloyd’s Business Loans might be useful whether you want to grow, purchase new equipment, deal with commodity resources, or just better manage your company's cash flow.
But, despite the loan's modest conditions, it may be challenging for a new business to get. No prior trading experience is necessary, that much is true. But, if the firm is less than two years old, this will undoubtedly be a barrier, as it is for many other large banks.
But, if you are willing to invest the effort into what may be a tedious application process, it might be worthwhile. After all, if accepted, you will have access to one of the greatest small business loans available.
How to Get
- You may get a loan for your new business of between £1,000 and £50,000
- An attractively low, fixed APR of 11.6%
- Borrowers who need a loan of less than £25,000 won't have to pay an arrangement charge
- Choose a length of service between one and 25 years
- There are no prepayment penalties and fixed monthly payments
10. Royal Bank of Scotland — Top Start-Up Business Loans
Another large commercial bank, RBS, has developed a product specifically for new businesses seeking funding, perhaps once running out of the ability to invest their own money. Without a need for a minimum amount of time in business, RBS's Small Business Loan is a good option for new businesses.
The amended material on RBS's website also shows that the previous requirement of having revenue of £2 million or less to utilise a Small Business Loan has been removed.
The amended material on RBS's website also shows that the previous requirement of having revenue of £2 million or less to utilise a Small Business Loan has been removed.
To begin with, it's fantastic that RBS provides access to a business financing product for so many people. There is a little amount of money available, reflecting the fact that it is so easily accessible.
But, £50,000 might be enough for many new businesses to get off the ground. More than half of the company's borrowers may anticipate an annual percentage rate (APR) of 11.70 per cent or less from this loan programme.
How to Get
- You may get a loan of up to £50,000
- Loan periods might be anything from one to seven years
- There are no service or interest charges associated with making a repayment
- Personal assurances from directors may be necessary
- There is no need for a set length of time in operation, and RBS has recently removed its previous requirement that applicants' annual revenue by at least £2 million
11. Yorkshire Bank — Large Start-Up Business Loans
A northern banking behemoth and Clydesdale Bank offshoot, Yorkshire Bank is a household name. At this time, they are advertising a loan with an attractively low annual percentage rate (APR), as well as clear and uncomplicated repayment terms.
This is often the domain of huge banks, but Yorkshire gives it a unique spin. You may apply for this loan in as little as 10 minutes online and get a decision in as little as 48 hours, just like with any alternative lender.
The yearly revenue requirement of £5 million is the program's major downside, since it may exclude many new and small businesses not yet big enough to get an IPO and leverage shareholder support.
How to Get
- Ten minutes is all it takes to complete the application
- No penalties for paying off your loan early or in a lump amount
- Must be at least 18 months of financial data for the firm
- Yorkshire Bank's loan is excellent since it combines the greatest features of both alternative and conventional financing options
12. CubeFunder — Sound Start-Up Business Loans for SMBs
Located in the United Kingdom, CubeFunder is an innovative business loan prioritising personalised service. CubeFunder simplifies the application procedure into four easy stages and aspires to have fewer fees and regulations than its competitors.
Alternatively, CubeFunder provides large loans to relatively new businesses, if they can provide business bank statements with at least 3 months of revenue.
Whilst the application procedure only takes a few days and the repayment amount is a set dollar amount rather than an annual percentage rate (APR), the total cost is difficult to determine.
How to Get
- To borrow between £5,000 and £100,000
- A one-time payment with no interest added
- The path to financing is simple and quick to follow
- The minimum credit score required is low
- Must be able to provide business bank statements with at least 3 months of revenue
Best Start-Up Business Loans — A Buying Guide
Many companies provide startup firms with capital for their first two years of operation.
Although a company credit check is part of the application process, they will often work with companies of varying credit ratings and lenders take a lot of things into account when issuing loans.
Typically, what do you need to get a loan to launch your business? Your company must satisfy the following requirements at a minimum to be considered for a startup loan:
- 📘 To qualify for a startup loan, your company must have been operating for at least 6 months, ideally between 12/24 months. (Registration in the UK is mandatory.)
- 📘 To legally own a company, you must be at least 18 years old.
★ 1. How do commercial loans function?
Commercial loans come in a wide variety of forms, each with its own set of features and benefits. The development level of your company is one factor to consider when deciding on a format.
Companies, like people, have credit histories and scores. If they are strong, getting financing shouldn't be too difficult. There won't be much of a credit history for a brand-new company, so a lender will likely want to start slow or want some kind of collateral.
“Start-up” loans are used to fund the creation of a new firm or the expansion of an existing one. They are normally provided for durations of one to five years and may be government-backed.
Companies that have been around for a while and have proven themselves financially have more lending choices available to them. These options are in addition to others, such as business credit cards and factoring.
Financial aid for businesses: the good and the bad
If you need access to a big sum of money for a longer time and at a lower interest rate than a business credit card, a business loan may be the way to go. Nevertheless, this isn’t the most flexible alternative and it may often be challenging to qualify for the qualifying criterion.
| Pros | Cons |
|---|---|
| ✔️ Substantial sums may be borrowed and the funds delivered all at once, making this kind of financing ideal for one-time expenditures like corporate expansion or personnel purchases. | ❌ Not very adaptable; you should know how much you need to borrow before applying. |
| ✔️ The interest rate and your monthly payment amount will be clearly stated from the outset. | ❌ It's possible that the required minimum loan amount is more than the amount you'll really need. |
| ✔️ Cheaper rates than a business credit card (subject to status). | ❌ Possible prepayment penalties. |
| ✔️ Loan terms are favourable in the long run. There are a few loan companies that will extend their repayment terms up to 25 years. | ❌ To qualify for a loan from some financial institutions, applicants must meet stringent requirements about annual income, credit history, and the nature of their firm. |
| ❌ Collateral and a personal guarantee may be needed to get a loan. | |
| ❌ If you're having trouble making ends meet, you can do better. | |
| ❌ However, not all lenders are honest about their interest rates right away. |
Making Use of Popular Start-Up Loans
A loan for a new company venture is like a shot of adrenaline that may help it take off and succeed. Expenses in the early phases of a startup are significant.
The following are examples of potential uses for the funds:
Start-up capital & expenses
Establishing a company takes time and money, from early planning to paying employees and stocking shelves with products to meet demand. It's common for a company's initial few months in operation to be the most trying. When first starting, it might be difficult to maintain consistent operations without access to outside capital.
Your premises are also one of the most expensive parts of getting a new business up and running. When starting a company, one of the most challenging aspects is finding a suitable location to lease or buy.
Getting the word out
Public relations and marketing are essential for every successful organisation. This is especially important for newer firms that are still building their clientele. With these funds, you may establish and publicise your brand and roll out promotional efforts.
Online storefront
Building a consumer base and increasing brand awareness requires an effective website.
Building a professionally-looking, technologically advanced website might be prohibitively expensive if you don't have access to a web developer, which is another reason why company financing is useful.
In this day and age, more than half of all searches are performed on mobile devices, with an increasing amount of emerging market buying power.
Staffing needs
Your company will eventually reach a point where it needs more staff. Investing in new team members might be costly, but putting it off until it's too late can have a devastating effect on your company's performance.
Cautions
You should exercise caution if you plan on borrowing money. Getting a large sum of money for your company may be thrilling and terrifying. Use your loan wisely and efficiently to avoid the pitfalls of wasteful expenditure.
If feasible, keep your company's money in a separate account and only move it over to your main business account when absolutely necessary.
Always try to have a good relationship with your lender.
If you ever run into trouble meeting a repayment date, keeping an open channel of communication will keep things amicable between you and your lender. You may avoid being late or missing payment deadlines by setting up automated payments.
Typically, getting into debt makes the most logical sense when it builds a sure asset like a quality home mortgage in a good area.
Top Start-Up Business Loans: Where to Look?
Banks and other conventional lenders aren't the only options for entrepreneurs seeking seed capital. Online lenders and credit brokers are two more sources. Lenders may hesitate to provide capital to new enterprises due to the ‘greater risk' they pose.
Your approval odds will reduce if you have a short trading experience and can't show substantial capital or collateral. Startups now have more choices than ever because of the proliferation of alternative finance providers.
New enterprise financing is available from these streams:
- Online unsecured credit providers
- Governments
- Banks
- Angel investors
- Crowdfunding
- Merchant cash advance
- Business Credit Cards
They work well for startups since they can borrow smaller sums of money loadable onto a debit card without the need to put up collateral. Loans not requiring principal repayment upon default are known as “unsecured”.
The lender may demand security in the form of ownership stakes in the company. Although unsecured start-up company loans are considered less hazardous, they might come with somewhat higher interest costs and shorter payback periods because of this.
★ 1. Online lenders
Credit brokers and online lenders offer rapid and easy access to capital for businesses, particularly startups.
Options and versatility are open to new ventures, and some lenders even provide financing to companies with poor credit histories.
Due to the convenience of applying online, the approval procedure takes only 24 hours, while traditional methods of obtaining financing from institutions like banks or the government can take weeks.
In addition, the costs and terms of loans offered by Internet lenders are typically very easy to understand. In this way, business owners can borrow money with full knowledge of the interest rate they will be charged and the exact date when payments are due.
You can keep track of your bills and repayments easier with the help of email and text message reminders offered by many lenders.
- High levels of agreement
- Inviting people of all credit ratings
- Instant payouts
★ 2. Governments
Traditional lenders, such as banks, have dominated the business finance industry for decades. And for new enterprises, it might be especially difficult to obtain finance in the traditional sense.
This is mainly because modern banks place a premium on large corporate borrowing and thus subject applicants to stringent application processes and severe lending requirements with low acceptance rates.
Bank applications can be time-consuming; even after you've submitted all the required paperwork, you may need to meet with a representative in person to clarify the details. It may take a few weeks or months before you hear back, and much longer for the money to show up in your account.
Therefore, while it's true that banks are more likely to lend startups a larger sum of money, these businesses typically run into trouble doing so since their business concepts and sales records are less than stellar.
- High standards for loan approval
- Need a high credit rating to apply
- Compensation is issued on a weekly, monthly, or quarterly basis.
★ 3. Merchant cash advance
A merchant cash advance is unlike a bank loan in that you don't have to worry about your payments increasing or decreasing based on your income.
These interest-free advances are based on your startup's projected earnings from debit and credit card sales in the near future. This cutting-edge service is available to new companies that can provide four months of bank and credit card records.
- Get £5k-£500k
- You get to keep all of the money made from direct cash transactions.
- No hidden costs, all-inclusive pricing
★ 4. Business credit cards
If cash is needed, you might check into business credit cards as a possible funding option.
Rather than a long-term financing option, they are often utilised for a one-off emergency. Another perk of business credit cards is that they are excellent for companies of any size, even startups with just a few employees.
Although many new businesses lack an established credit history or score, a business credit card may be used to establish one.
★ 5. Angel investors
Angel investors are wealthy people who are willing to risk their capital outside of bog-standard mutual fund ventures, opting for aggressive avenues to reap the rewards of a promising business venture.
Investment capital is only one of the many ways that angel investors may help businesses get off the ground; they can also provide vital ideas and guidance. While Angel Investors may be useful, you should be aware of the following before committing to this kind of funding:
- The investor receives no repayment of the funds provided, but in exchange receives a stake in your company and a cut of your future profits.
- Angel investors are known for their involvement and desire to have a say in all matters pertaining to the business they have funded.
★ 6. Banks
True, banks specifically provide financing for companies, but new ventures have difficulty getting loans since they pose the most risk to the lender. Startups have difficulty getting loans from conventional lenders since they don't yet have a proven track record, solid management, or a sizable customer base.
Several banks provide business loans, but only if you can put up collateral.
If your company fails to make its loan payments as agreed, the lender might “foreclose” on the collateral to recover its losses. To recoup the income they would have earned from you, conventional lenders often impose penalties for prepayment.
★ 7. Crowdfunding
The popularity of fundraising using crowdfunding is increasing significantly. Crowdfunding is a kind of financing in which a firm receives monetary contributions from a large number of individuals. The money may be used for debt, equity, or a return.
Debt crowdfunding
Debt-based crowdfunding, also known as peer-to-peer lending, is a kind of financing that is comparable to traditional bank loans but in which borrowers borrow money from a large number of individuals rather than a single institution. The creditworthiness of a company is determined via the use of a P2P lending platform, after which loans are made to the company.
Marketplace lending platforms connect lenders with borrowers, and investors set the interest rate. Investors get interest payments from the borrowing company in exchange for their capital, but they receive neither a tangible product nor ownership in the company. Crowdfunding via debt might expose firms to far more danger than traditional company loans:
- Interest rates on P2P loans are often much higher than those offered by traditional financial institutions.
- Several debt-based platforms, in exchange for using their services, charge exorbitant membership fees.
- It may be difficult to get finance for a new business if you have a low credit score, and a rejection letter can hurt your standing even more.
Stocks crowdfunding
Investors put their money into a startup in return for equity stakes. Investing in a firm and becoming a shareholder gives the investor a stake in the business and the potential for financial gain.
Before equity crowdfunding platforms, only the rich and business angels had access to this market; today, anybody may invest. While equity crowdfunding has certain benefits, it also has some drawbacks:
- Almost all equity crowdfunding platforms also tack on success fees or subscription fees when users are successfully paired with investors and get funds.
- It may take a while to gather enough money from investors.
- You will have to give up some control of the business.
- Crowdfunding promises future rewards
Credit and assets
How much do interest rates often run on loans for new businesses without VC-backing or shareholders with dividends? Like any loan or line of credit, the APR offered on a startup loan will change based on your creditworthiness and the financial institution you choose.
In Summary
One adage to debt is that it’s fine if you’re using it to invest in a sure asset like quality homeownership. The house of price will never fall to zero. But with around half of businesses, according to some popular studies, failing after five years, it’s a question you will need to wrestle with carefully.
Debt is never worth taking on if you know you can't afford to pay it back, and if you're unable to make loan repayments you could end up in a far worse situation. However, if you pick the right loan, it can be a huge help when getting your business off the ground.
We hope this guide has been useful. As a last reminder of our top five startup business loans:
- Tide
- Capital on Tap
- Fleximize
- British Business Bank
- UK Government
