Startup Loans

Financing can be tricky to secure for startups. Traditional bank loans may require several years of operation, high minimum annual turnover, or more credit history than a startup can present. Not every peer to peer ecommerce option is ideal for this kind of company, but some are uniquely organized to provide loans specifically to this type of business. The minimum requirements for startups that are likely to be found are: to be 18 or older, to have been in operation for at least 12 months, to have the legal right to remain in the UK for the duration of your loan term. Here are three of the best P2P/B2B financing options available to new businesses.

A quick, easy, and effective solution to manage cashflow issues. Get loans against unpaid invoices, starting from $500. Quick and easy approval process, fully automated.

Quick Approval
Praised by Media
Target Audience: US Merchants with Unpaid Invoices

Overall Rating

Effective

One of the most innovative companies in the domain of business loans, with unique possibilities which are not accessible via traditional cash advance, or traditional Peer to Peer lenders.

Quick Approval
Average Rating 9.2 in TrustPilot
Target Audience: £3000+ Per Month with 20% Margin UK Businessess

Overall Rating

Innovative

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All UK-Facing Companies Featured On This Website Are Approved By The FCA.

What Advantages do Secured Loans Offer to New Startups?


As you can see from the three companies listed above, it can be difficult for a brand new company, with little history, to acquire unsecured funding. For this reason, Secured loans may be an excellent option for dedicated new traders. P2P lenders like Funding Circle offer secured business loans in the forms of: asset finance, property finance, and secured loans.

Security can range from a personal guarantee to the use of the asset purchased or all business assets as collateral. Because lenders have little business behavior on which to predict creditworthiness when it comes to startups, secured loans may be the easiest form of financing for these to secure.

What about the UK’s Government Loans Startup Programme?


If you are looking for a regional small business or startup grant read our comprehensive guide.

 

Also, the UK Government’s Startup Loan Scheme (Startup co uk) provides loans of ₤1,000 to ₤25,000 to 18+ year old persons living in the UK. The average loan awarded is ₤4,000, and is paid off at 6% interest over 5 years. Startups, here, include businesses that have existed for less than one year, though this is extended to two years in some circumstances.

Approved businesses also receive business mentoring as part of the programme. The application is simple and performed online, with a reply received in 3 business days. Though the government does not publish the percentage of applicants who receive funding, the programme has been extended to tens of thousands of businesses and sole proprietors.