Second Loans

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

 

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.

Please note, although you may have worked with one of our Delivery Partners on your first Start Up Loan, our Second Loan applications are managed directly by our Applications Team. Our Business Advisers will work closely with all applicants to finalise documents and offer support throughout the process.

Eligibility criteria

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Your business must have been trading for at least six months but cannot have been trading for more than two years.

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The additional finance must be for the same business as your first Start Up Loan.

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Your total outstanding Start Up Loans balance cannot exceed £25,000 at any one time (per individual).

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The total lent to any one business cannot exceed £100,000 (including all individual business partners).

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You must still meet all of the original Start Up Loan criteria.

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You must have made six full repayments on your first Start Up Loan.

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The repayments on your first Start Up Loan must be fully up to date at the time of applying.

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In the last six months, you must not have had any late or missed repayments on your first Start Up Loan.

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You cannot have been on a reduced repayment plan or Interest Only period (capital repayment holiday) within the last six months.

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All applications are subject to credit check and business assessment.

The application process

Because this is a personal loan used for business purposes, our application process will consider your personal circumstances, your repayment history for your first loan, your business’ trading history and your future business plans.

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

1. Application form

You will be required to provide both personal and business information, including your bank account details, to help us determine whether you are eligible to apply for a Second Loan. We will use this information to complete a credit check.

It should take no longer than 15 minutes to complete this application form and, once submitted, we will contact you within two working days to let you know if you’re eligible to proceed.

2. Your 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 Business Plan
  • Personal Survival Budget
  • 6-month Actual Business Cash Flows
  • 12-month Cash Flow Forecast
  • Three months’ consecutive business bank statements

We have created templates for each of these documents that specifically outline what information we require and will send these to you to complete once you pass Stage 1.

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).

3. Business Adviser review

You will be assigned a dedicated Business Adviser, who will provide any support you require to finalise your application and business plans for assessment.

4. Assessment

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.

Outcome

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 Partner who will mail you a copy of your Loan Agreement for signing and once you have returned this, your loan funds will be distributed.

Apply today

Submit your application form and we’ll be in contact within two working days.

The application process

Because this is a personal loan used for business purposes, our application process will consider your personal circumstances, your repayment history for your first loan, your business’ trading history and your future business plans.

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

1. Application form

You will be required to provide both personal and business information, including your bank account details, to help us determine whether you are eligible to apply for a Second Loan. We will use this information to complete a credit check.

It should take no longer than 15 minutes to complete this application form and, once submitted, we will contact you within two working days to let you know if you’re eligible to proceed.

2. Your 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 Business Plan
  • Personal Survival Budget
  • 6-month Actual Business Cash Flows
  • 12-month Cash Flow Forecast
  • Three months’ consecutive business bank statements

We have created templates for each of these documents that specifically outline what information we require and will send these to you to complete once you pass Stage 1.

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).

3. Business Adviser review

You will be assigned a dedicated Business Adviser, who will provide any support you require to finalise your application and business plans for assessment.

4. Assessment

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.

Outcome

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 Partner who will mail you a copy of your Loan Agreement for signing and once you have returned this, your loan funds will be distributed.

Frequently asked questions

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 £20,000 for your first Start Up Loan and have now repaid £10,000 then, provided you meet all of the other eligibility criteria, you are able to apply for a Second Loan of up to £15,000. Similarly, if your original Start Up Loan was £25,000 and you have now repaid £5,000, you can apply for an additional £5,000.

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 may 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 Partner. 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 Partner is, please contact us on 0344 264 2600, weekdays 9.00am to 6.00pm, excluding bank holidays.

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.

If you have any further questions about applying for a Second Loan, contact our Customer Service team online or call 0344 264 2600, weekdays 9.00am to 6.00pm, excluding bank holidays.

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

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