what do I need to apply for a Start Up Loan?

A Start Up Loan is a government-backed personal loan available for anyone looking to start or grow a business in the UK.

Along with funding, successful applicants get 12 months of free business mentoring and exclusive business offers to help their business succeed.

You could borrow between £500 and £25,000, with a 1 – 5 year loan repayment term and a fixed interest rate of 6% p.a.

The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.

Use this checklist to make sure you are well prepared before starting your application.

Your Start Up Loans application checklist

To successfully apply for a Start Up Loan, you will need to meet certain criteria and provide certain personal and professional documents.

1. Eligibility requirements

To be eligible for a Start Up Loan, you must:

• be 18 years of age or older
• be a current UK resident
• be starting a new business or have been trading for up to 36 months
• be unable to secure finance from other sources (self-declaration is OK)
• have a business based in the UK
• have the right to work in the UK
• be eligible under the terms of the scheme regarding your business type and loan purpose
• pass our credit checks and afford to repay the loan.

To understand what your total and monthly repayments for your Start Up Loan would be, use our loan calculator.

If you are in a business partnership, buying an existing business, or starting a franchise, you are able to apply for a Start Up Loan.

Read the full list of eligibility criteria.

2. Personal information & documentation

This is required as the first step to prove that you may be eligible to apply:

• a valid proof of identity, such as a passport or driving licence
• proof of UK address that has been dated within the last three months
• your National Insurance (NI) number
• we may ask you to provide proof of an active personal bank account.
   

3. Funding information

To accurately judge your application, we also require:

• details of other funding you have applied for or received – this may include bank loans, grants, investments or alternative start-up schemes
• an application statement – explain why you need the Start Up Loan and why alternative funding was not available or suitable.

4. Credit and financial status

In order to successfully apply, you will also need:

• a personal credit check – this is to understand your credit score, as it impacts your loan eligibility and terms
• disclose any outstanding debts – tell us about any debts or previous credit issues
• disclose your current financial standing – provide a clear picture of your current finances, including the last three months of consecutive bank statements, assets and liabilities, to support your repayment ability.

Read more about the loan application documents required.

5. Business documentation

A number of business documents are required to prove your financial understanding of running a successful small business, including:

• a detailed business plan – covering your product/service, target market, competitor analysis, marketing strategy, and operations plan
• a cash flow forecast or financial projections – typically for at least 12 months, including expected income, costs, and profit and loss
• a personal survival budget – a breakdown of your personal income and outgoings.

See our range of free business planning templates and guides.

6. Legal considerations

You will need to be aware of the legal obligations that may affect your eligibility, including:

• Subsidy Control declaration – The assistance provided through Start Up Loans, like many Government-backed business support activities, is regarded as Subsidy or State aid.  This is because this assistance is supported by the Government and therefore gives an advantage to the business that receives it.
• your business's legal structure – proof of your business structure is needed, as this impacts your legal and tax obligations
• compliance with other legal requirements – this includes all necessary industry licences and permits.

Tips for applying for a Start Up Loan

Here are a few helpful pointers when applying for a Start Up Loan.

1. Double-check all documents before applying

Correctly completing and checking all the necessary documents could help you complete the process faster and more smoothly.

2. Create PDFs before the application process

Scan all the documentation you need to upload before you begin the online process to save time.

3. Keep track of deadlines

Consider keeping a note of any deadlines for the application to increase your chances of being accepted.

You might note these in a notebook or spreadsheet, or set regular reminder alerts on your laptop.

4. Ask for support when you need it

If you need support during the application process, don’t hesitate to contact us so we can help you move forward with confidence.

You can also read our FAQs about the loan, your eligibility, the application process and more.

Learn more

Read more about how to apply for a Start Up Loan

Apply for funding now

For more information, visit the Start Up Loans website.