Business Startup Loans: Helping you build and fund your new business

Your business skills and energy are important, but having the right financing is vital if your startup is to succeed. There are many ways to fund a new business, and whether you borrow money, dip into your savings, look for equity investors or go another route, you need to understand all your options before you choose. Borrowing may be the simplest way to fund your business, but many lenders will not lend to startups.

Why won’t lenders lend to start-up businesses?

Lenders base their lending decisions on the risk that they will not be paid back. Your start-up has no trading history so they have no evidence that they will be repaid; they see the risk as too high for lending. Some may be prepared to offer new business loans by taking into consideration any previous experience you or your partners have in the sector, others might be persuaded by your business background and how professional your approach may be. You need to make the most of these factors to get lenders to agree to provide the funding you need.

At Rangewell, we have a 5-step plan to help

Step 1   Your first step should be to ensure you understand the real costs and challenges your new business will present. You should be able to decide on a clear figure of just how much finance you will need, and be able to explain exactly how you will use it.

Step 2   Then ensure that your own personal financial situation has no issues like outstanding debts, CCJs or other negatives. You may need to provide a personal guarantee to secure the funding you need.

Step 3   Prepare a business plan with a forecast profit and loss, your balance sheet and your cashflow. This should help you see how much funding you need and help lenders or investors understand the potential of your business.

Step 4   Now simply contact us. We’ll help you use your business plan as a tool to help secure the funding you need. Because we work across the entire UK lending market, we know which lenders to approach.

Step 5   We will find lenders who are prepared to provide the finance you need and use our unique online system to ensure you can secure the funds you want at the most competitive rate.

The most appropriate business loan for a start-up

There are many types of business loan. They include straightforward lending, which may be a low cost secured business loan. Putting up assets, such as property, as ‘security’ means that the lender has a right to take them if your business is unable to make repayments. This can be particularly suitable for startups, as it reduces the risk to the lender, making it more likely that they will be able to offer you a deal.

Other types of lending include various types of Asset Finance which can be a cost-effective way to spread the cost of the equipment you need. You may also be interested in ways to ease cash flow issues, such as Invoice Finance and Merchant Cash Advance.

Government-backed Startup Loans

Government supported Startup Loans are now available for entrepreneurs looking to start a business. The scheme is designed for individuals over the age of 18 who have a viable business plan, but no access to finance. The scheme can provide loans to businesses in every sector.

Why you need Rangewell to find finance

As business finance experts, we understand the challenges you face, and the options that are open for you. We also know the lenders who share our enthusiasm, who are most likely to help, and who can offer the most competitive rates for all types of finance.

Coming to Rangewell means getting an expert team working for you and your new business, which can be an important asset for your future. We can discuss your objectives, and help find answers scaled to fit your business as it grows, from alternative funding providers as well as traditional lenders. When you call us, we can explain the options – and find you the solutions you need fast.

At Rangewell, we help all types of business find all types of finance, whether you're looking at finance to start adventure holidays and outdoor businesses to hospitality, manufacturing or services, and we can find the most suitable providers for your new business. Call us to discuss your startup plans.