Start Up Loans For New Side Hustles
🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast – Maximising the Benefits of Start-Up Loans
What is a Start Up Loan?
When you are looking to start a new side hustle or business, you may need to secure some funding. Obtaining a loan from a traditional high street bank isn’t always easy or possible. To help with this, a new form of loan called the Start Up Loan has been introduced.
Start Up Loans are personal loans that have been specially designed to help new businesses start their operations. These loans were created to provide support to aspiring business owners who have faced difficulties in obtaining assistance from lenders.
To date over 100,000 small enterprises have been granted loans aimed at helping them expand their activities. The Start Up Loan program was launched by the government in 2012. Is administered through the state owned
British Business Bank. Its purpose is to assist early stage businesses in the UK that lack funds or support from friends and family to access financing and mentoring.
By combining access to finance through this program the goal is to enable a greater number of businesses to realise their potential. This in turn will lead to growth and provide a boost to communities.
What makes Start Up Loans Different
What sets Start Up Loans apart from traditional business loans is that they are personal loans specifically intended for business purposes. Moreover these loans are unsecured meaning you don't need to use your home or any other asset as collateral in order to receive funding.
The responsibility of providing these loans lies with The Start Up Loans Company, which is funded by the UK Government.
Loan Terms
Individuals can borrow amounts ranging from £500 to £25,000, with repayment terms that extend from one to five years. The interest rate for these loans is fixed at 6%.
Once you submit your application a dedicated business advisor will be assigned to assist you in completing the application form. In addition to the loan, if your application is approved you will also have the opportunity to receive 12 months of mentoring.
Loan Criteria
To qualify for a Start Up Loan you must meet the criteria;
- You must be least 18 years old.
- You need to be a resident of the United Kingdom.
- You should be starting a business or have a business that is less than three years old.
- Your business operations should be based in the UK.
- You must have the right to work in the UK.
How to apply
For more information please visit Start Up Loans at the British Business Bank's official website;
https://www.british-business-bank.co.uk/ourpartners/start-up-loans/
FAQs
Final thoughts
Securing financial support is often one of the most challenging hurdles when launching a new side hustle or small business.
The UK government's Start-Up Loans scheme serves as an empowering alternative to traditional business loans, offering flexible terms, affordable interest rates, and the added value of mentoring. Whether you're kick-starting a small e-commerce business or launching a tech startup, these loans can be the financial fuel to help drive your dreams into reality.
This program aims not just to financially equip you but to provide the mentorship and guidance to ensure long-term success. So if you meet the criteria, why not take the first step towards turning your business idea into a tangible reality? After all, every big venture starts with the decision to try.
With over 100,000 small enterprises already benefiting, it might be worth considering a Start-Up Loan to give your venture the initial push it needs.
sidehustles.co.uk one-minute podcast
🎧 Listen Now: Sidehustles.co.uk
One-Minute Podcast – Maximising the Benefits of Start-Up Loans.
Here's a quick real-world insight from our network involving a business owner who successfully secured a Start Up Loan.
Many people overlook the added value of the 12-month mentoring that comes with loan approval. This business owner not only gained valuable financial backing but also leveraged the mentorship to refine their business model and navigate early-stage challenges more effectively. The mentorship component turned out to be just as valuable as the financial support, providing tailored guidance that you often won't get from a traditional high street bank.
So, if you're considering a Start Up Loan, don't underestimate the power of mentorship—it can be a significant advantage for your new business.
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