If you have a good cashflow forecast, a reasonable profit and loss forecast, and evidence that there is a market for your business, you can secure an investment of up to £100,000 for your start-up or early-stage business.

In this article, the Sunny team will explain everything you need to know about securing funding for your business through The Start Up Loans Company.

Who created the scheme?

After the markets crashed in 2008, many banks slowed down their lending to businesses. This left a lot of start-ups and early-stage businesses without the funding that they needed to get off the ground or to expand. The government introduced the British Business Bank (BBB) to remedy this problem.

One of the first moves of the British Business Bank was to found The Start Up Loans Company (TSULC). TSULC provides start up loans to entrepreneurs of up to £25,000. Although the money is lent for business purposes, TSULC’s finance packages are actually unsecured personal loans because you don’t have to provide any form of collateral.

TSULC’s loans have a fixed interest rate percentage of 6%.

Who can apply for start-up finance?

You can apply for this finance if your business:

  • Hasn’t launched yet, or,
  • has been trading for less than 2 years.

 

How to apply for start-up finance with The Start Up Loans Company

TSULC have five main criteria that they assess when they are considering whether to support a loan application. These criteria include:

  • Demonstrating your knowledge of the sector or industry you’re operating in,
  • Evidence of the demand for your business’s products or services (invoices and letters of intent to buy should be provided),
  • a business bank account for the loan to be paid into,
  • an extensive business plan,
  • profit and loss forecasts that are impressive yet achievable.

 

Additionally, you will need to provide TSULC with a copy of your CV and the CVs of anyone else in a directorial or managerial position in your company.

What happens after you apply?

Typically, it takes around 3 months for your application to be processed.

If you are seeking funding for a new business, it is better to apply for the funding sooner rather than later so that you aren’t waiting for the money after launching your company.

If your business is already operational, you might want to consider a start-up loan to expand and develop your company. If this is the case, your profit and loss forecasts will be scrutinised and they must be accurate.

How to secure finance of up to £100,000

TSULC can offer loans to multiple directors of the same company. Each individual director can apply for up to £25,000 each. The maximum limit for a single business is £100,000 on this scheme.

Some potential issues to be aware of before you start your application

Despite the fact that TSULC’s loans are provided for business purposes, they are classified as a personal loans. This means that you will be credit checked as a part of the application process. As a result of this, if you have a poor credit score, your application will be denied – no matter how good your business plan is.

Another caveat of these loans is that if your business ceases trading, you will be personally liable to pay off the loan. Traditional business loans are often written off once the business goes into insolvency however TSULC loans do not.

We can help

If you are looking for help securing finance for your start-up or early stage company, get in touch with our team. Call us today on 01623 559362 or email us on [email protected].


For a free chat on how we can help you, please complete the contact form below and we will be in touch.