Compare loan rates
Get live, personalised quotes on unsecured or secured loans from a large panel of lenders through our partner Love Finance.
Start Up Loans business loans review
Kickstart your new business with a government-backed startup loan of up to £25,000 at a fixed rate of 6%.
No reviews yet.
Write a review
SUL business loans comparison
SUL business loans
1 - 1 of 1
Other popular business loans
SUL business loans overview
Established 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 have access to a year of free business mentoring.
How does SUL work?
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.
Key features of an SUL loan
| 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 | |
| More Info |
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 6%, meaning repayments will remain the same over the term of the loan.
Am I eligible for Start Up Loan funding?
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. |
| More Info |
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.
How can I apply?
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.
- Prepare. You will need to provide a business plan and a cash flow statement for your application. Help and advice resources, as well as support on live chat, can be accessed on the SUL website.
- Register. Complete the online registration form and choose a delivery partner to support you with your application.
- Apply. Provide information about the business, how much you want to borrow and how you intend to use the loan.
- Agree. Once approved, you will need to sign a Loan Agreement. After this is returned to SUL you will receive your loan and have access to twelve months of free business mentoring.
Help and advice is provided throughout the application process.
Start Up Loans customer reviews
Start Up Loans has received fairly negative reviews from its customers, according to customer review site TrustPilot.
It currently has a TrustPilot rating of 2.4 out of 5, based on 158 reviews (updated May 2022). Many of its reviewing customers (63% to be exact) have complained about the poor communication they had received and some quite a few stated that they had been rejected, even if they had a clean credit report. This can sometimes be the case, not all loan applications are accepted, even if you meet the eligibility criteria but, it is quite unique to see this many complaints regarding this.
On the other side of the coin, 33% of Start Up Loans customers rated the subsidiary of British Business Bank as “Excellent” or 5 out of 5 stars.
It seems to be, those customers who had detailed business plans and relevant documents were more likely to receive a loan. In particular, one customer commented: “I have found this entire process to be faultless. I was doubtful given some of the reviews as my credit score is not the best.”
Alternative sources of funding
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.
- Get funding from investors. If they see potential in your business or idea they may offer to purchase a portion of your company in exchange for financing.
- Crowdfunding. Get the word out using social media, crowdfunding sites or by investing in marketing. Family, friends, fans and even strangers who share your passion may want to contribute funds.
- Apply to a government scheme. Various government schemes exist that offer support to new and small businesses. Learn more about government support for businesses.
How can we help?
Invoice financing
Unlock the value in your invoices today to access the funding your business needs to move forward.
Frequently asked questions
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
More guides on Finder
-
Financial adviser vs coach: Who to talk to about your money
From financial advisers to accountants – if you need help with your personal finances, here’s who to talk to about what.
-
Best ways to invest £20k
Discover how you can build wealth by investing £20,000 and explore some of the top strategies for investing your money.
-
Zing review: An international money transfers app from HSBC
The multi-currency account could be a cost-effective option for anyone who is going abroad, provided you don’t plan to withdraw lots of cash.
-
What is a good salary in London?
According to the latest figures, a single person living in London would need a gross salary of £37,000 to be financially stable.
-
1 in 4 Brits plan to open an ISA in the new tax year
More than 13 million Brits plan to open an ISA after the new financial year starts on 6 April, according to a new Finder survey.
-
Winners revealed in the Finder Car Insurance Innovation Awards 2024
These awards recognise the car insurance providers displaying the best innovations in their field.
-
Winners of the Finder Car Insurance Innovation Awards 2024 revealed!
The winners of the Finder Car Insurance Innovation Awards 2024 have been announced, find out who won here.
-
Finder Car Insurance Innovation Awards 2024
These awards recognise innovation in the area car insurance. Find out which provider took the top spot this year!
-
DigiAssets 2024 returns to London this May
DigiAssets 2024, the leading digital asset conference is returning to London this May. Check out the speakers and get 10% off tickets with Finder.
-
first direct switch deal: Get £175 (2024)
How to get £175 from switching to first direct. Plus, how to get up to £136.50 in savings interest through first direct’s Regular Saver.