Start-Up loan as preliminary to Angel Funding
Connect London has helped hundreds of early stage businesses to access Government backed start up loans of up to £10K.
As these are personal loans, several partners in a new business can each apply for an individual loan. For example if there are three partners in an early stage business they could each apply for £10K to get a total of £30K.
Up to five partners in a business can apply, as long as the business has been trading for less than 12 months.
Early stage businesses are typically using a ‘cocktail of funding’ to grow; this might include some of their own cash, a bank overdraft, a start-up loan and HP or lease finance.
Government start up loans have become a key enabler, particularly for applicants with a poor employment or credit history and possibly CCJs, that High Street Banks regularly decline. Each start up loan recipient has access to a business mentor to advise and guide them.
We are now seeing the second stage, where businesses have successfully proven strong market demand for their products or services and are seeking angel funding to continue profitable growth.
The UK Government has successfully used EIS and SEIS to encourage more business start-ups, combined with the start-up loan scheme and a more pro-business environment, it’s good news for the economy. This positive encouragement of start-ups really does make the UK a good place to start and grow a new business.