To make comparing even easier we came up with the Finder Score. Costs, speeds and features across 50+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyTo make comparing even easier we came up with the Finder Score. Costs, speeds and features across 50+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyEstablished in 2012, Start Up Loans (SUL) is a government-backed subsidiary of the British Business Bank. Working with a national network of delivery partners, its goal is to ensure new businesses have access to affordable funding and mentoring. SUL loans are available to individuals to start a new business or expand an existing enterprise.
In addition to getting the business loan, successful applicants will also get up to 12 months access of free business mentoring.
With an SUL loan, up to four partners can each apply for a maximum of £25,000, so potentially £100,000 is available per business. Loans are unsecured, meaning no assets are needed as collateral.
| Loan type | Fixed rate Unsecured loan |
|---|---|
| Credit limits | £500 to £25,000 |
| Loan terms | 1 year to 5 years |
| Loan rate type | Fixed |
| Personal guarantee | A personal guarantee may be required |
| Repayment holiday | |
| Multiple loans allowed at the same time | |
| Option to top up a loan | |
| Arrangement fee | |
| Early repayment fee |
Up to four partners in a business can choose to borrow between £500 and £25,000, meaning a maximum borrowing potential of £100,000 per business. Interest rates are currently fixed at 7.5%, meaning repayments will remain the same over the term of the loan.
It’s important to be certain that the repayment terms are realistic and achievable before applying for an SUL loan. You will also need to meet the following criteria:
| Maximum trading requirement | 2 years |
|---|---|
| Business types | Limited Company,Sole Trader,Partnership |
| Geography | UK-based |
| Additional eligibility info | Your business must have been trading for less than 24 months to apply. Start Up Loans are not available to fund debt repayment, training/qualifications/education programmes or investment opportunities that don't form part of an on-going sustainable business. |
The director that applies will need to be aged 18 or above, resident in the UK with the right to work in the UK, and will need to pass credit checks.
In addition to these criteria, your business type and loan purpose, ie how you intend to spend the funding, will need to comply with eligibility criteria set by the scheme. Detailed information on excluded business types, and excluded loan purposes can be found on the SUL website.
If you’ve decided that an SUL loan is the right choice for your business, you can start your application online. You will need to provide a business plan, cash flow forecast and personal survival budget.
Help and advice is provided throughout the application process.
Start Up Loans has received very positive reviews from its customers, according to customer review site TrustPilot.
It currently has a TrustPilot rating of 4.2 out of 5, based on 477 reviews (updated July 2026). Many of its reviewing customers (56% to be exact) have given Start Up Loans a 5 star rating, often complimenting the customer service and overall experience.
On the other side of the coin, 40% of Start Up Loans customers rated the subsidiary of British Business Bank as “Bad” or 1 out of 5 stars. Claiming the exact opposite experience of those who rated the service as ‘Excellent’.
It’s a good idea to explore all of your options when looking into raising funding for your small business. There are a range of different routes to consider.
Find out how a loan could help you to buy an existing business.
Revenue-based finance can offer more flexibility than other funding options. We explain how it works.
Learn more about the alternatives to a traditional business loan.
See how to get a business loan as a limited company in the UK, and how much you can borrow.
Find out how to get a loan if you work for yourself, including which lenders offer business loans for sole traders.
Peer-to-peer business loans aim to offer cheaper rates and an easier application process than more traditional lenders.
Sometimes an unexpected opportunity presents itself or a piece of equipment can break. We look at what you can do if you need money for your business as soon as possible.
Merchant cash advances allow you to get a loan and only pay it back when your business actually makes money. Find out how they work and compare providers.
We explain the various types of asset financing available to help you choose a competitive deal for your SME.
Discover how to find the best short term loan for your business.
