The Start Up Loans Company started operating in September 2012 with the intention of providing loans at a reasonable rate of interest to businesses that have been established for no more than 2 years. Entrepreneurs are helped by a business adviser to complete a business plan and submit a loan application. Following drawdown of the loan a mentor will provide advice and guidance to owners to help grow the business.
Business loans are available for anything up to £25,000 and are repayable over 1 to 5 years. The interest rate is presently fixed at 6% per annum and there are no fees payable. Credit reference searches are undertaken but just because someone has a poor credit history does not necessarily mean that their application will be declined.
You may be interested to read that through the Start Up Loans Company the amount lent so far is £165,598, 349. Some 31,264 businesses have received financial support in this way. In total, 29 businesses have received funding each day. Of the applicants, 62% were male and 38% were female. The average amount of each business loan was £5,297. When looking at the age of business owners, 21% were in the 18 to 24 year age bracket, 32% were aged between 25 to 30, 37% were 31 to 49 years of age and 10% were 50 years of age or over. Interestingly, some 46% were unemployed before applying for a loan.
Obviously, finance has been provided to so many different types of business including the Cornwall Camper Company that restores and then rents out high-end VW Camper vans, the Yorkshire Meatball Company based in Harrogate who make and sell meatballs in their restaurant, Sturdy Cycles in Powys,Wales that build and sell quality bicycles, Bluebird Tea that sells loose leaf tea in Brighton and ShortCuts that is a child-friendly hair salon located near Milton Keynes where children can go and enjoy the experience of having their hair cut.