Business start-up loans up to $250,000
hospitality - retail - personal services - b2b
Business start up loans are difficult to get, but not impossible! We have access to lenders who may consider your application if you meet their criteria.
What you need
You must have a solid business plan and have done a conservative cashflow forecast. It helps if you have a business model that will have you generating cash immediately, eg forward orders or bookings.
Lenders generally require you to have experience in the industry in which you are starting your business.
Putting in some money yourself is critical: unless you are borrowing against property, lenders want you to be taking on some of the risk, instead of them fully gambling on your new venture.
Loan options for business start-ups
invoice finance
If your new venture is a B2B and you are planning to offer credit terms of more than 14 days, then invoice finance could help you get up and running.
With invoice finance, you can get cash within 24 hours of raising invoices.
Find out more about invoice finance here.
loan secured by property (first or second mortgage)
Banks are very reluctant to lend money to new businesses. But if you have a good amount of equity in your property, you may be able to get a second mortgage. Some lenders will capitalise your interest payments for six months, meaning you can get your business up and running without having to worry about loan repayments for a while. There are advantages and disadvantages to doing this; read more about interest capitalisation here.
FAQ’S
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When your interest is capitalised, you don’t pay anything for the first three to six months of your loan. Fees and the interest that you would have paid over that first three to six months are added to your loan balance at the end of the capitalisation period, creating a new loan balance.
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Unsecured business loans for business startups are rare. But if your new venture is a b2b (business to business) and you want to offer credit terms, then we may be able to help you with an invoice finance facility instead.
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Yes, you must sign a general security agreement. This document creates a promise that if your business can’t pay off the loan, you will pay it. Depending on the lender, they will also take security over your business as well.