Start Up Loans are required for many new businesses in the UK. As the volume of new start up Businesses is high it would be expected that there would be a high demand for finance to assist the Start Up.
With a high demand for finance it would be expected that there would be a good supply to meet the demand. The reality is that there is only a small level of assistance for Start Up Businesses in the UK. Please find below a couple of options which are available.
The Start Up Loans Company https://www.startuploans.co.uk/ offers personal loans for business purposes. The rates are very good at 6% per annum and terms are up to 5 years. The Start Up Loan Company can provide a loan of £25,000 per Director for any business with less than 24 months trading. All Star Funding Solutions is an affiliate to the Start Up Loan Company. Our back office teams are able to work alongside a business to make sure the application is fully completed and they can help put together the loan application which increases the chance of success.
Alternative Loan Market
If the Start Up Loan Company decline an application or the Start Up does not meet the criteria then the alternative loan market should be the next step. The alternative loan market has a limited amount of lenders who are prepared to assist Start Up businesses unless there is sufficient security provided to minimize the risk to the lender.
In reality these are few and far between for new Start Ups as lenders see a major risk with a Start Up. If a lender is willing to assist the level of funding is usually <£50,000 and more often than not the term has to be less than 24 months.
If a Director / Owner of a Start Up is a homeowner and has equity in their property then this will improve the chances of obtaining funding. The amount of lenders available to assist significantly increases. All Star Funding Solutions has lenders available who can provide funding within 24-48hrs if security is provided.
Poor Credit History
It is almost a myth that poor credit history has an effect on a Start Up Business obtaining funding. In essence even a Director / Owner with a good credit history will struggle to obtain funding on an unsecured basis. As above if there is security to be provided then most often a lender will overlook the poor credit history as their lending is secured against an asset.
A number of Start Up Businesses have the need to purchase Assets for a business. They often would look at obtaining a loan to buy assets which is not always the best solution. All Star Funding Solutions work with a large number of Asset Finance providers who can provide the funding to buy Assets for a business. The only caveat to be aware of is that any new Start Up Business would be required to provide at least a 10% or 20% deposit against the asset with the lender supporting the remainder.
Invoice Finance is a great option once a business has started to trade and has their funds tied up in outstanding invoices. Over at All Star Funding Solutions we can help unlock these Invoices and have lenders who can assist. There are various options available, however, most Invoice Finance lenders will require the facility to be disclosed to the debtor and they would most likely insist on completing the credit control in a professional basis. Over at All Star Funding Solutions we have a panel of lenders who can provide funding against a single invoice to a full ledger. A Start Up business would benefit by the additional cash flow and can be selective with the Invoices they need to be funded so not to incur high costs.
If you would like to apply for a loan please click on the link below.
All Star Funding Solutions Limited
2 Mount Street,
Office Tel 0161 8211478 Mobile 07771 430 740
Please find below our specialist areas:
- Asset Based Lending
- Business Loans
- Cashflow Finance
- Invoice Discounting
- Stock Finance
- Spot Factoring
- Credit Insurance
- Trade Finance
- Credit Insurance
We operate throughout the UK but have built strong relationships in the following areas Manchester, Leeds, Liverpool, Sheffield, Preston, Newcastle, York, Chester, Birmingham, Warrington, St Helens, Wigan, Bolton, Bury, Bristol, Southampton, Cardiff,
If your business requires funding then we can help you find the solution