Startup Loans

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  • Access to specialist lenders
  • Expert advice - professional service 

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Startup Loans

Launching a business requires a large financial investment.

Capital for a startup company, however, is often lacking, causing new businesses to struggle for growth.

Clifton Private Finance has decades of collective experience in supporting business growth, supercharging cash flow and helping businesses reach their full potential.

Business Loans Success Stories

Business Loan for Procurement Company
Area
Nationwide
Capital Raised
£1M
Date
January 2025
Asset Finance for a Battery Energy Storage System
Asset Finance for a Battery Energy Storage System
Area
Cheshire
Capital Raised
£750K
Date
January 2025
Commercial Bridging Loan to Refinance Hotel Before Sale
Commercial Bridging Loan to Refinance London Hotel Before Sale
Area
London
Capital Raised
£13.8m
Date
January 2025

 See All Business Finance Case Studies

Why Our Customers Trust Us

With expert guidance, business finance can provide an essential, versatile, cost-effective solution.

business finance rates

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with business finance lenders across the market.

Award Winning Team

Multi-Award-Winning Team

Our team of business finance advisers have years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

independent advice

Fully Independent

As an independent brokerage, we focus on your best interests when comparing business finance options: from costs and terms to speed of service.

To book a free, no-obligation call with an adviser to discuss your options, contact us today.

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Our Experts

Our dedicated business finance team have deep industry knowledge and years of experience.

Jon Moffatt

Jonathan Moffatt

Head of Business Finance

Ben Francis

Ben Francis

Finance Executive

James Ellcaott

James Ellacott

Commercial Finance Broker

How We Work

1. Get a Customised Quote

Our business finance brokers will get an understanding of your business and your requirements, look at your financial forecasts and accounts, and provide a sense-check on what product(s) will best fit your needs, as well as how much you could borrow, and what the costs and terms could look like.

2. Compare Options

When you’re happy with the proposed solution, we’ll go away and compare options across the market. We’ll often present a range of choices ranging from lowest cost to most flexible, and we’ll talk you through the pros and cons of each if it’s a close decision.

3. Submit Your Application

If you’re happy with the terms we can source, we’ll handle the paperwork and submit your application for you. We’ll handle any issues and questions that may arise from the lender, and we’ll keep chasing your application to ensure funds are released as quickly as possible.

4. Receive Funds

You receive your finance success! We’ll always be here for any ongoing questions or support you require during your loan term. 

Speak to an business finance specialist today

Get the funding your business needs to reach its full potential. We’ll guide you through the process and take care of the heavy lifting. 

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Startup Loans

Read some of our latest business finance case studies below.

Business Startup Loans - How We Can Help

We offer a range of startup loan solutions, from securing finance for an existing business to acquiring a business. Every business is unique, so our business finance experts provide bespoke financing solutions. 

Launching a business requires a certain level of financial investment - it is rare that a business can rise from literally nothing. For some entrepreneurs, start-up loans can offer a necessary boost of capital. 

In this article, we cover everything you need to know about start-up loans. From what constitutes a startup loan, to what they can be suitable for and alternative sources of funding that can be used in their place.  

Startup Loans Explained 

A startup loan is a type of financial support provided to new or early-stage businesses to help them get off the ground and cover various initial expenses. 

Startup loans are used to fund the initial costs of starting a business, which can include purchasing equipment, acquiring inventory, covering marketing expenses, hiring employees, and securing office or retail space. 

In business, a startup is considered a business that has been trading for three years or less. If your business has been going for more than three years, you are ineligible for any sort of startup loan. 

Below are some examples of financial solutions that can be considered startup loans: 

Finance 

Is it a Startup Loan? 

Unsecured bank loan 

Yes, if in the first 3 years of business 

Unsecured personal loan 

Can be depending on terms of the loan 

Secured bank loan 

Yes, if in the first 3 years of business 

Asset finance 

No, though some asset finance is designed for startups 

Government grant 

No 

Business grant 

No 

Peer-to-peer loan 

Yes, if in the first 3 years of business 

Invoice finance 

No 

Merchant cash advance 

No 

Commercial mortgage 

No 

Personal director investment 

No 

Personal director loan 

Yes, if in the first 3 years of business 

Venture Capital 

No 

Credit cards 

No 

Bank account overdraft 

No 

See your Funding Options

Why Do Lenders Provide Startup Loans? 

It’s correct to assume that banks tend to shy away from risky investments. But while offering loans to young businesses can be risky, the pros often outweigh the cons when providing capital to promising startups. 

New businesses are the lifeblood of the country’s economy. While established corporations play a significant part in the country’s success, it is the startup that often brings the innovation to prevent a stifled economy and drive growth. 

Startups seeking funding are also exceptionally good business for financial institutions, who take care to lend money to businesses with a strong chance of success, making profit from interest and any other associated fees. 

Because of this, financial institutions and the government both have an incentive to support new enterprises with startup loan products. 

Alternatives to Startup Loans 

As seen in the chart above, there are many different financial products that may not be startup loans but are still good tools in the arsenal of a young business.  

Grants and investments are two alternative financial channels available to the entrepreneur, while line of credit solutions such as credit cards, bank overdrafts, and merchant cash advance can prove invaluable in the early years of business. 

Do I Need Money to Get a Startup Loan? 

Probably. One of the biggest questions when looking to start a business is how much of your own money you will need to invest. In truth, this is a complicated question as it forms part of the whole package you are presenting to potential lenders. In many cases, you will need to show you have some money to put into the business yourself. 

Banks and other lenders are looking to mitigate their risk, and seeing that you are willing to put your own money forward to your business is a strong indicator of your faith in the idea.  

How much money you need to invest will differ based on many other factors - including the strength of your business plan, your experience in the work, and the profitability of the business sector. 

In many cases, the more capital you can put forward, the stronger your application will be. Don’t let that put you off the application, though, as it is possible to be accepted for a startup loan even if you don’t have much in the way of personal capital to invest. 

How Important is a Business Plan? 

Very. In terms of being eligible for a startup loan, your business plan is the most important document you will have. A professional business plan showing the viability of your business model is certainly a large part of instilling the lender with confidence. 

Your business plan is more than simply the financial forecast, although that is a very important aspect. It also details the strength of your idea, presents your experience in the industry, and shows your passion and belief in the business. 

It is advantageous to polish your business plan to present your company in the best possible light. Remember, there is help available to complete your business plan, from specialist companies who will work with you to write the perfect plan to charitable institutions who will provide advice on writing business plans for free. 

How Relevant is My Credit History? 

Very. Both your personal credit history, if you are a director, sole trader, or partner, will be looked at in detail by a prospective lender, and the business credit history will also be considered.  

If your business is very new, it will not have relevant credit scoring and greater weight will be placed on your personal credit and those of the other directors or partners in the business. 

If your credit history has taken a recent hit, it may be worth working on improving it for a few months before applying for a startup loan. 

Next Steps

Navigating the world of startup loans can be confusing, especially if it is your first venture into securing business finance. As a specialist finance broker, Clifton Private Finance can provide a clear picture of the options available to you. We will assess your specific set of circumstances and arrange a finance solution tailored to your needs.

Frequently asked questions

You can find the most common questions asked about business loans below. If you have a question that isn't answered here, please email us at commercial@cliftonpf.co.uk

Commercial finance is a type of financing exclusively for use by businesses, but there's a huge variety of uses. Commercial finance refers to property, vehicles, assets, and even funding for the upfront costs of businesses. It's a great source of financing for smaller businesses looking to develop and grow.

Commercial brokers are essential mediators between clients and lenders, they will consult with business owners, analyse their financial records, and reach out to lenders to acquire a loan with the best possible interest rate. Commercial brokers will liaise on several loan types, from properties to vehicles, and more.

When applying for commercial finance, your eligibility for certain loans will depend entirely on a few factors: creditworthiness, financial history, and business performance. It's important for a lender's comfort that you have the financial solidity to pay your commercial loan and a history of paying your debts to demonstrate that the loan will be paid on time.

Suppose your creditworthiness or overall business health suggests you cannot acquire the desired commercial financing. In that case, you'll likely face much larger interest rates to reduce lender comfort or even complete denial.

Commercial finance is an effective way of securing capital, without reducing a business's cash flow. It's primarily focused on specific commercial needs, such as stock, new equipment, or real estate. Unlike the broader term, 'business finance', commercial finance is tied specifically to growth, expenses and acquisition.

When it comes to financing solutions, commercial finance offers an array of products for business owners to choose from, here are some of the primary choices:

Term Loan:

A term loan is a type of loan where a company receives a lump sum to repay over a set term. For example, a company borrows £100,000 to repay monthly for a fixed period of five years. This commercial finance product is useful for smaller businesses that require funding for operational costs, including employee payment and stock inventory.

Asset-based Lending:

Asset-based lending is a loan that is secured against an asset from a business, known as collateral. Should you fail to repay your loan, the lender can then seize the asset to repay the debt accrued. Whilst repaying a loan, the asset linked to the loan itself is still owned by the business, but if you decide to sell the linked asset, you must repay the loan in full.

Invoice financing:

For countless industries, an invoice for a product or service can have delays of up to 90 days, leaving your business short on cash flow which could otherwise be spent on upfront costs and even growth. Invoice finance is a specialised loan for businesses with significant unpaid invoices (accounts receivable) which are then used as collateral by lenders. The lender assumes the debt of the business and therefore will collect the accrued invoices to pay the debt owed, relieving the pressure from the business owner.

Trade finance:

Trade financing is a product which is designed to facilitate international trading, providing capital for upfront international trading costs.

Equipment leasing:

If your business is reliant on equipment to run, be it a computer or a crane, equipment leasing is a cost-effective way of acquiring technology that you might need for the operation of your business. Over time, the business owner completes monthly repayments of the equipment during a specified term, but what happens after the payment period is dependent on your contract terms. 

Lenders can offer a lump sum or balloon payment for the business owner to purchase the equipment, allowing the business to fully own it. Those who only need equipment temporarily, however, can stick to the monthly payments and return the equipment after the lease has ended.

Let us do all the hard work of finding the right product and lender for your circumstances. We secure business finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Jonathan Moffatt
Head of Business Finance

Book a consultation and speak to one of our experts today