Business Finance & Funding FAQ’s

What finance is available to me if I haven’t started trading?

Start Up Loans are government backed loans where the borrower/s can each borrow up to £25,000 to a maximum of £100,000 for any one business at a Fixed Interest Rate of 6% Start Up Loans – click here to find out more.

What funding can I access if I have been trading for 6 months, 1 year, 2+ years?

There are lots of options ranging from High Street banks to Alternative providers (i.e. Responsible Finance providers) to Asset-backed lenders (Invoice & Equipment finance specialists).

What key business documents do I need when applying for trading?

Annual Statutory Accounts, Management Accounts, Profit and Loss Account, Balance Sheet, Cash Flow forecast and Personal Assets & Liabilities Statement.

Who should I go to first when looking for a business loan/access to finance?

If you have been trading for more than 6 months, try your local Growth Hub – they are a great centralised place to receive connections to finance providers from. Alternatively, give us a call at Start.Biz.

If I get turned down by high street banks for a business loan is there any alternatives?

There are lots of alternatives. A good place to start would be to look for local Responsible Finance providers who often offer the required level of finance whilst also appreciating the need for SME Business Owners to get decisions on funding quickly. Click here to find out who provides responsible finance in your area.

How much can I borrow?

This will depend on a number of variables:

i) The level of profitability currently within the business and moving forwards is critical. The more profitable you are, the more likely you are to get higher levels of finance.

ii) Whether the Business Owner is offering a Personal Guarantee to secure the loan

iii) The quantum of investment that the Business Owner is putting in

Can I get a grant?

Yes but this will be dependent upon the criteria of each individual grant. A good place to start would be to look at Government’s grants for startups.

Can I get a project funded?

Possibly but a bit like Grants, it is entirely dependent on the funding resource in the market at that time. Innovate UK offers Loans and Grants with a focus on business’ growing via Innovation, find out more here.

What kind of business activity can I get finance for?

You can apply for finance for a multitude of activities including:

– Business acquisition/merger

– Asset purchase

– Invoice Finance

– Refinance

– Working Capital/Cash Flow

Are there still any covid recovery schemes available?

The Recovery Loan Scheme (RLS) is available until 30th June 2022

What is a good interest rate?

The Interest Rate applied is often directly linked to the perceived level of risk with the loan itself. High Street lenders will lend at 3% + the Bank England’s base rate of lending. Currently, SMEs are finding it harder and harder to access funding at these rates via the High Street. Rates for SME’s can range from as little as 6% right up to 14%. Sometimes the easiest thing to do is secure finance at a higher level of interest to get the required funding before then refinancing at a later date at a better rate of interest.

If you have any questions about financing your business or would like to discuss your personal circumstances, please contact our expert team today.

Access to Finance Consultation Line: 0800 069 9090 (freephone) or email finance@start.biz

Business Finance & Funding FAQ’s

What finance is available to me if I haven’t started trading?

What funding can I access if I have been trading for 6 months, 1 year, 2+ years?

What key business documents do I need when applying for trading?

Who should I go to first when looking for a business loan/access to finance?

If I get turned down by high street banks for a business loan is there any alternatives?

How much can I borrow?

Can I get a grant?

Can I get a project funded?

What kind of business activity can I get finance for?

Are there still any covid recovery schemes available?

What is a good interest rate?

If you have any questions about financing your business or would like to discuss your personal circumstances, please contact our expert team today.

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