What is a startup loan?
Startup loans are aimed at new businesses that may not yet have trading history or established credit. They can provide the capital needed to get your business off the ground, such as buying equipment, securing premises, or funding marketing. Startup loans often come with fixed terms and may include support or mentoring, but lenders will usually assess your personal financial history as well as your business plan.
What can a startup loan be used for?
- - Buying essential equipment or tools
- - Securing premises or office space
- - Covering early marketing and advertising costs
- - Funding working capital during the first months
- - Supporting business launch and growth plans
Pros
Provides funding for new businesses with little trading history
Can be used for a wide range of startup costs
Some lenders offer mentoring or support alongside funding
Cons
Personal credit history often assessed, which can be a barrier
Loan amounts may be smaller than other products
Higher risk for lenders can mean stricter terms and higher fees
Who offers startup loans
