Frequently asked questions
What is a capital repayment holiday?
A capital repayment holiday (CRH) is an agreement to pay the interest only element on your Start Up loan for an agreed period (3 to 12 months). This would have been agreed as part of the initial loan application.
What is a reduced payment plan?
A reduced payment plan is where you are on a different payment plan from your original Start Up Loan agreement.
If I pull out of the business or it ceases trading, do I still have to repay the loan?
Yes, a Start Up Loan is a personal loan that is used for business purposes and therefore you are personally liable for repaying the full loan amount and interest as per the Loan Agreement you signed, regardless of that status of your business or your position within it. The only time you can repay your loan without incurring any interest is during the 14-day cooling off period, directly after signing your Loan Agreement. During this period, if you decide you no longer want your loan you can return the funds and you won’t be liable for any of the interest you have accrued. Please refer to your Loan Agreement to confirm the details of your cooling off period.
What is the repayment period for a Start Up Loan?
You are required to make monthly loan repayments over a term of one to five years, depending on your affordability and preference. The exact loan term will be agreed as part of the application process and documented in your Loan Agreement if your application is successful.
What should I do if I think I’m going to miss a loan repayment?
You should contact your Finance Partner immediately and let them know your situation. It is always best that you speak to your Finance Partner if you believe you may not be able to make your next repayment rather than wait until the payment is missed.
What happens if I default on my loan repayments?
Our Finance Partners follow standard market practice when loan repayments are missed and take a fair and reasonable approach. If you fail to make a payment your Finance Partner will attempt to contact you to determine the reasons for the payment being missed. They will also work with you to come to a reasonable and fair agreement about how you will address this and fulfil your obligations in the future. This will be followed up with an email and/or letter stating that a repayment(s) has been missed and outlining what needs to be done to remedy the situation.
If your Finance Partner is unable to contact you after repeated attempts, they may then look to recover the outstanding payments through various means such as, but not limited to, applying to issue a County Court Judgment (CCJ) or referring your case to an approved Debt Collection Agent. If you’re unsure who your Finance Partner is, please check your Loan Agreement.
I think I’m experiencing financial difficulty and need help managing my finances. What can I do?
Don’t worry, there are plenty of free and impartial debt advice organisations willing to help. The Start Up Loans Company works closely with a major debt charity, Money Advice Trust, who offer the following services:
- The national debt line:
Debt advice experts who are committed to helping individuals improve their situation. Millions of people have already received support managing their debts.
- The business debt line:
A unique service to help the self-employed and small businesses managed their debts.
Other sources of free and impartial debt advice are set out below:
While your Delivery Partner is able to provide support and guidance on your business and Start Up Loan, they cannot provide independent debt advice. This should be sought from the above organisations.
*Please note: The Start Up Loans Company does not endorse any debt management companies who charge fees for debt advice or debt management payment plans. Please contact us immediately if you’ve been approached by any such company.
I have received a Notice of Default from my Delivery Partner or Finance Partner. What should I do?
It is important that you respond to any notices of missed payments as soon as possible. Full contact details will be provided on the notice you received.
What happens if I do not respond to notices of missed payments or fail to keep up with my repayments?
It is important that you respond to any notices you receive and keep up to date with your loan repayments. Like any regulated consumer finance product, not meeting required loan repayments may result in one or more of the below actions against you:
- Credit Reference Agencies may be notified of any outstanding amounts, which may affect your credit rating and ability to obtain goods, services or particular forms of employment.
- A third-party collection agency may intervene to help recover any outstanding amounts.
- Legal proceedings including, but not limited to, a County Court Judgment may commence.
I’ve received correspondence from a Debt Collection Agency. What should I do?
If you have failed to make your agreed loan repayments, you may be contacted by one of our approved Debt Collection Agencies. Until further notice, they will be overseeing your loan by helping you to work out your regular repayments or signposting you to relevant external advice in order to recover these costs. As such, you should contact the agency as soon as possible to commence this process. Please note that in most cases, once a Debt Collection Agency has intervened in the process, the Start Up Loans Company and our Delivery Partners will be unable to comment further about your loan.