Am I Ready to Apply for a Start Up Loan?
Applying for a Start Up Loan is a big step in turning your business idea into reality, and being well prepared can make all the difference. To help you get started, we’ve created a Start Up Loan checklist which you can go to at the end of this page to help you track your progress and ensure you have everything in place before you apply. Alongside the checklist, this guide walks you through each key requirement, so you know exactly what to expect from the application process.
If you’re thinking about launching a business or have been trading for less than three years, a Start Up Loan can be a powerful way to secure funding and support. These government-backed loans, offered through the Start Up Loans Company, provide between £500 and £25,000 at a fixed interest rate, with no assets or guarantors required. Successful applicants can also receive 12 months of free mentoring to help their business thrive.
Before you begin your application, make sure you’re fully prepared – the more organised you are, the smoother the process will be. This checklist will help you assess whether you’re ready to apply and what you’ll need along the way.
1. Check Your Eligibility
To qualify for a Start Up Loan, you must:
☑ Be 18 years or older
☑ Be a current UK resident
☑ Be starting a new business or have been trading for up to 36 months
☑ Have a UK-based business
☑ Have the right to work in the UK
☑ Be unable to secure funding from other sources (self-declaration is acceptable)
☑ Have an eligible business type or loan purpose
☑ Be able to pass credit checks and afford repayments
Being confident that you meet these criteria before applying will save time and boost your chances of success
2. Gather Personal Documentation
As part of the application process, you will be required to provide documentation to verify your identity and financial position. This includes valid proof of identity, proof of your current UK address, and your National Insurance number.
All applicants must supply three months of personal primary bank account statements. This is a key requirement and forms part of our practice as responsible lenders. Reviewing recent bank statements allows lenders to assess affordability accurately and ensures that lending decisions are made responsibly, protecting both the applicant and the lender. This process reflects our duty to lend in a fair, sustainable way and helps confirm that repayments can be comfortably managed alongside personal living costs.
3. Prepare Your Funding Information
You will need to clearly explain how much funding you are requesting and how it will be used within your business. This includes providing details of any other funding you have applied for or received, such as grants, personal savings, loans or investments. You’ll also be asked to provide a short explanation outlining why a Start Up Loan is the most appropriate form of finance for your business and why alternative funding options are not suitable. This helps lenders understand your funding journey and the role the loan will play in supporting your business growth.
4. Build Your Business Documents
A strong application is supported by clear and well-thought-out business documentation. You will be required to submit a business plan that explains what your business does, who your customers are, how you will generate income, and how you plan to operate and grow. Alongside this, a 12-month cash flow forecast is needed to show how money will move in and out of the business over time. You will also need to complete a personal survival budget, which outlines your personal income and essential monthly expenses, helping demonstrate that loan repayments are affordable.
5. Understand Legal and Compliance Requirements
As Start-Up Loans are government-backed, applicants must complete a Subsidy Control declaration as part of the process. In addition, you will need to provide confirmation that your business meets all necessary regulatory and compliance requirements relevant to your chosen sector. This may include industry-specific regulations, professional standards or mandatory registrations, depending on the nature of your business. Providing this confirmation helps ensure your business is appropriately within its sector and is ready to trade responsibly.
Applying for a Start Up Loan is an important step in your business journey, and preparation is key. By gathering the right documents, understanding your financial position and clearly presenting your business plans, you can approach the application process with confidence. With the right support and guidance in place, a Start Up Loan can provide both the funding and structure needed to help your business move forward successfully.
To make preparation even easier, use the Start Up Loan checklist as a practical, step-by-step guide to track your progress and make sure nothing is missed before you apply.
If you need support with your application, business planning or financial forecasting, Let’s Do Business Finance is here to help guide you every step of the way. To find out how we can help your business to Start, Grow, and Thrive, contact our team today!