Business loans
Compare the official government-backed Start Up Loan with other ways to fund a young business. Understand eligibility, repayment responsibility and alternatives before applying.
Government-backed programme
Official Start Up Loans programme for business purposes.
Personal responsibility
You remain personally responsible for repayment.
Compare commercial alternatives
Other start-up finance options may suit different needs.
Business loans
Start Up, unsecured and secured options under Business Loans.
Decision guide
Use this checklist against current programme rules. Meeting the points does not guarantee approval.
Opens the official Start Up Loans eligibility page (leaves WiT Money).
Official programme
The official UK Start Up Loans programme — a personal loan for business purposes. Not the same as commercial business finance.
Official programme delivered with government backing via the British Business Bank. Current fixed rate, amount and term below.
The loan
Rate
7.5% fixed p.a.*
Borrow
£500–£25,000 per applicant
Term
1–5 years
Security
Unsecured
Fees
No arrangement fee or early repayment fee
Mentoring
12 months available
Need more than £25,000?
Each eligible owner or partner may be able to apply individually, subject to the programme's business-level maximum. Up to £100,000 total per business across eligible applicants.
Support included
Mentoring is support, not regulated financial advice.
*Rate for new applications under current rules (effective 2026-04-06). Programme terms last checked 13 August 2026.
Official eligibility link leaves WiT Money.
Important — this is a personal loan
A Start Up Loan is taken out by you personally for business purposes. You remain responsible for repaying the loan and interest even if the business stops trading or your plans change. Government backing of the programme does not protect you from repayment.
Requirements can vary by delivery partner and application.
Repayment calculator
Uses the current programme fixed rate of 7.5% p.a. from central programme data. Illustrative only.
Term (1–5 years)
Rate used: 7.5% fixed p.a.
Illustrative only. Actual repayments depend on the approved loan amount and term. Confirm current programme terms before applying.
Estimated monthly repayment
£311.06
Fit check
Match finance to the purpose, eligibility and risk. Commercial options are not part of the government-backed programme.
Explore: Business Loans
Explore: Business Loans
Explore: Asset Finance
Explore: Invoice Finance
Explore: Business Overdrafts
Before choosing
Use these prompts before you apply — borrowing creates a personal repayment commitment.
Can you personally afford the repayments?
Will the business generate enough cash to support repayments?
A longer term can reduce monthly payments but increase total interest.
Would another type of finance better match the purpose?
Understand that the loan remains your personal responsibility.
Commercial alternatives
These are commercial finance providers, not part of the government-backed Start Up Loans programme. Eligibility, pricing, security and personal-guarantee requirements differ by lender.
Official Start Up Loan
Commercial alternatives
Small Business Loan
£10,000–£750,000
Borrowing amount
Rates from 6.9% per year
Pricing
Finance type
Business loan
Security / guarantee
Personal guarantee or business-asset charge
Last checked 13 September 2026
Business Loan
£1,000–£1,000,000
Borrowing amount
Rates from 1.5% per 30 days
Pricing
Finance type
Business loan
Security / guarantee
Personal guarantee may be required
Last checked 13 September 2026
Business funding
From £1,000
Borrowing amount
Pricing varies
Pricing
Finance type
Business funding
Security / guarantee
Personal guarantee may be required
Last checked 9 August 2026
Commercial alternatives may suit businesses that need different borrowing amounts, structures or eligibility criteria. They are not part of the government-backed Start Up Loans programme, and rates, fees, security and personal-guarantee requirements vary by provider.
Suitability
Use current programme rules — not outdated trading-age shortcuts. Approval is never guaranteed.
Application
Typical steps — timelines vary and approval is not guaranteed.
Step 1
Confirm current programme rules before preparing documents.
Step 2
Explain the business model and how funds will be used.
Step 3
Show how repayments remain affordable.
Step 4
Personal credit and affordability checks apply.
Step 5
If approved, funds may be released and mentoring may be available. Timelines are not guaranteed.
Before you borrow
Borrowing creates a fixed cash-flow commitment. Compare total repayable, not only the monthly figure.
Regulation
Some business lending falls outside the FCA regulatory perimeter, while certain lending to sole traders, small partnerships or other eligible borrowers may be regulated. Check the provider, borrower type and activity. Do not assume every commercial facility is FCA-regulated.
Alternatives
Not all options suit early-stage businesses equally.
FAQs
Quick answers on the government-backed programme, personal liability, eligibility, repayments and alternatives.
How we check information: Programme terms, eligibility and repayment information are checked against official Start Up Loans / British Business Bank sources.
What we compare
Reference links only — these organisations do not endorse WIT Money. Programme information is checked periodically, not in real time.
Found an outdated Start Up Loan rate, eligibility rule or lender detail?
Email contact@witfinancegroup.com. We review reported inaccuracies and update verified information promptly.
Confirm official programme rules first. Then compare business loans or explore other start-up finance if the programme is not a fit.