Boost your business resilience with a tranche loan

With forecasts suggesting we’re entering a period of economic uncertainty; many entrepreneurs may be wondering if borrowing right now is the right thing to do.

However, getting a loan even in uncertain times, might still be the right option for your business and there are different ways of reducing your initial outgoings.

One way Start Up Loans can support your business is through a process called tranching your loan.

What is a tranched loan?

The French word for ‘slice’, tranche means to divide something into smaller segments, especially money.

Simply put, a tranched loan allows you to borrow part of the amount your finance provider has agreed to lend to you now, with the rest (if you need it) to follow at a later date.

Why you might consider tranching your Start Up Loan

The main advantage is having the certainty of a lending agreement in place without having to borrow the entire amount in one go.

This means you won’t have to pay interest on money that you don’t need to use immediately.

This is especially useful when the economic forecast is uncertain.

If in the future you decide that you don’t need the full loan amount you don’t have to take it, you just pay back what you’ve borrowed under the normal terms of the loan agreement.

The Start Up Loan has a fixed interest rate of 6%, so no matter what interest rates do in the future, you’ll know exactly what you have to repay.

Start Up Loans

Amandla Ubuntu

Having previously held a position as a C-Level Executive in an education charity, and a handful of global leadership positions at big corporates such as Amazon and Marriott, Victoria realised she needed to do something more fulfilling

Read the success story about Amandla Ubuntu

Need more information?

Learn more about our Second loans and Sharia compliant finance offerings.

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
Customer being served at food stall

Second Loans

If you've already secured a Start Up Loan for your business and have been trading for no more than five years, you may be eligible to apply for a Second Loan for that same business.

about Second Loans Read More