Second Loans

Whether it’s an unexpected opportunity or part of a structured growth plan for your business, you may find yourself in need of more finance. 

It’s a natural part of building a business and that’s why we offer our Start Up Loan recipients the chance to apply for a Second Loan.

Hundreds of individuals have already taken up this opportunity. 

For some it has meant the ability to buy a new piece of equipment to speed up business operations, while for others, the additional finance has allowed them to expand their business into new markets and take their sales plan to the next level.

Whatever your reason, with the ability to access additional finance at the same fixed interest rate of 6% per annum and a loan repayment term of one to five years, Second Loans are an affordable way to continue building your business.

They’re just one more way we help new business owners thrive, after receiving their first loan.

The application process

A Second Loan is a personal loan used for business purposes. 

Our application process considers your personal circumstances, your repayment history for your first loan, your business’ trading history and your future business plans.

Eligibility criteria

In order to be eligible for a Second Loan you must meet the following criteria;

  • must have drawn down your first loan at least 6 months ago
  • must have been trading for at least 3 months, and no more than 60 months
  • must have made all repayments as per schedule for the 3 months preceding applying for the second loan.

Note: If you have been on a Capital repayment holiday, you must have made 3 full (capital repaid) repayments as per the schedule preceding the second loan application.


To support your application and prior to reaching a Business Adviser, if eligible, you will need to prepare and be able to discuss the following:

  • a summary of your business
  • a breakdown of how the Second Loan will be used
  • a summary of how the business has performed since receiving the first loan
  • an up to date Personal Survival Budget.

There are four key stages of the Second Loan application process:

Stage 1: Personal Details

We first check eligibility, you will then be required to confirm and/or update the personal information that you provided for your First Loan.

Stage 2: Credit Check

Here, you will be required to enter you proposed loan amount and loan term, as well as your bank account details. 

We will use this information to complete a credit check, helping us to determine your suitability for a Second Loan.

If you pass the credit check you will be taken straight to Stage 3 where you can continue your application. 

If you do not meet out lending criteria you will be informed straight away.

Stage 3: Your Business information and key documents

If you are eligible to proceed, you will need to provide a range of documents to help us assess your current personal situation and business progress since taking on your first Start Up Loan. This will include:

  • an up-to-date Personal Survival Budget
  • actual Business Cash Flow – Covering the last 6 months or from your start trading date, if less than 6 months
  • 12-month Cash Flow Forecast
  • three months’ consecutive business-related bank statements.

Note: Where you have used your personal bank account for business transactions, it is important that we understand which transactions relate to the business in order for us to assess your application for a second loan. 

To do this you will need to clearly mark on the bank statements each transaction that is business related. 

This will speed up the assessment of your application and enable you to obtain funds more quickly.

We have created templates for each of these documents that specifically outline what information we require. 

Download our Second Loans templates which includes a Personal Survival Budget, Actual Business Cash Flow and Cash Flow Forecast

Please note, you may also be required to provide other forms of verification documents, including but not limited to personal bank statements, proof of ID, proof of address and visa (if applicable).

woman woodworking in workshop wearing safety gear and mask


As part of our commitment to treating customers’ fairly, your application will be assessed by both your Business Adviser and at least one other qualified individual.

Please note, subject to this final assessment, you may be required to provide further information to support your application.


Once your application has been assessed, your Business Adviser will contact you via phone and email with the outcome of your application. 

If your application has been successful, you will be assigned to a Finance Provider who will send your Loan Agreement by post for signing and once you have returned this, your loan funds will be distributed.

If you are eligible to start a Second Loan Application this option will be available to you in the Customer Portal. 

Please Log in to find out:

Frequently asked questions

If you have any further questions about applying for a Second Loan, contact our Customer Service team.

    How much additional finance can I borrow?

    You are able to have a total outstanding balance of £25,000 at any one time. So if you borrowed £15,000 for your first Start Up Loan and have now repaid £5,000 then, provided you meet all of the other eligibility criteria, you are able to apply for a Second Loan of up to £15,000.

    As you will need to demonstrate that you can afford the ongoing repayment on your first loan and the new repayments on your Second Loan, your Business Adviser will work with you to ensure that your final loan amount matches your needs and does not overburden you.

    Please note, we can lend a maximum of £100,000 to any one business so if you and your business partners have already borrowed up to this threshold between you, you will not be eligible to apply for further finance.

    How do I find out my current outstanding balance?

    To find out your current outstanding balance, please contact your Finance Provider. You will find their contact details on the Loan Agreement you signed for your first Start Up Loan. If you are unsure who your Finance Provider is, please contact us

    How are the loan repayments set up?

    If your application is successful, your Second Loan will be treated as a separate loan to your first Start Up Loan, including separate monthly Direct Debit payments.

    Use our loan repayment calculator to work out your monthly repayments on a second Start Up Loan

    Building your business

    We work to give you the support you need to build your business at every stage of your journey.

    man at desk looking at laptop with camera and photos on it

    Sharia compliant finance

    Discover our Sharia Compliant Finance programme, delivered by our partner Financing Sharia Enterprise, which sticks to Islamic Finance principles.

    about Sharia compliant finance Read More