What are Start-up Loans?Published on 22nd March 2018 - Last update on 16th October 2018
If you’ve been trading for only a few months, raising the funds you need to continue developing your business and achieve a sustainable future can be difficult. However, it’s not impossible. Although your high street bank may be reluctant to lend on account of your limited trading history, there are still plenty of other funding opportunities available to startups. So whether you’re looking to reinforce growth, gain new equipment or receive a cash injection, you could apply for a Start-up Loan. Start-up Loans include a number of business finance products that work in different ways to provide your business with the funds it needs to grow to fruition. So if you believe that your business has what takes, but don’t know how to proceed, here’s what you need to know about Start-up Loans:
- Why apply for a Start-up Loan?
- What funding opportunities are available?
- What can Start-up Loans be used for?
Why should I apply for a Start-up Loan?
When thinking about providing funds for your business, your first thought might be to approach your local high street bank. However, due to tighter regulations following the 2008 banking crisis and the fact that you have a limited trading history, they might not be able to help. Although this can be disheartening to hear, know that there are other routes that you can take which may lead you towards the funds your business requires. If you’ve got a business proposal you firmly believe in and the determination to see it reach its full potential, you could apply for a Start-up Loan and remove the barriers that are holding you back.
What finance solutions can I apply for?
Although the number of funding opportunities available to you may be limited, they are out there. They’re just waiting to be found. But, when discussing funding opportunities for Start-up Loans, some of the products you could gain access to can range from Peer-to-Peer Lending, Secured Loans, Merchant Cash Advance, Invoice Finance and Asset Finance to Government-backed Start-up Loans. Although some of these products are secured using unencumbered assets (equipment, machinery, vehicles or property), there are also Unsecured solutions available which don’t require you to make such a commitment. So, even if you don’t currently own any assets, the funds that your Start-up needs to continue its journey could still be within reach.
What can I use a Start-up Loan for?
In addition, many of the Start-up Loan products on offer also carry no usage restrictions This means that the funds you may receive can be used to support and develop any area or aspect of your business. So whether you need to acquire vital equipment, introduce business vehicles, receive a cash injection or fund key growth projects, applying for a Start-up Loan could be what you need to get your business off the ground. However, if using a Government-backed loan, be sure to double check the terms and conditions. Some schemes may impose their own set of usage restrictions, affecting the product’s suitability and eligibility requirements.
Need help getting your Start-up on its feet?
Although running a Start-up can be an exciting step in your career path, ensuring that you have access to the funds it needs to develop can be difficult and frustrating. Yet, although your local high street bank might be reluctant to lend, there are plenty of other funding opportunities available to you through the Alternative Finance Industry. You simply need to know where to look. So if you’re running a Start-up and need help acquiring new equipment, cash flow support or a cash injection, apply for a Start-up Loan today or find out more with Rangewell.
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