Can I get a start-up business loan?

The short answer is yes however you may have to provide more information that you would do for an established business.

With no evidence of successful trading, we need to give the bank some comforting information to be confident of providing a loan.

This sort of information is also very useful for business owners and would form part of your business plan.

There are many templates available online, as a guide we have listed some useful information below;

1. Detailed background and skill set of the individuals, this will be very useful in allocating roles based on skill sets and resources.

2. Market Analysis – SWOT for example

3. Cashflows, forecasts and detailed business plan. You cannot start a business if you do not know how much money you will need month by month to cover operations and running costs.

4. Tolerances, what happens if you only trade at 50% or one of your customer doesn’t pay on time? Have you a disaster recovery plan?

5. Marketing, without marketing you won’t have sales and without sales, you don’t have a business so get your marketing plan created!

We supply start-up business loans every month to new businesses so don’t be put off by putting together a business plan, it really is vital to the success of any business, in particular, a new one.

Most banks will look for some form of security this can be secured or unsecured.

Secured Loan

Meaning secured on equipment, assets and property

Unsecured Loan

Personal guarantees are a personal assurance that the debt will be repaid and the individual offering the guarantee will offer to repay that debt if the company fails.

Securing a new business loan can mean the company can purchase assets that generate income, supply working capital which would allow the company to trade and meet its monthly cash flow obligations.

Investing in marketing and advertising is vital to get a business moving and if you don’t have any investment a loan can be a useful way to get a business off the ground.