What can I use a Start Up Loan for?
“Can I get a Start Up Loan for….” is a question our team at Let’s Do Business Finance hears almost every day. Every business is different, and so is every business owners situation – so your own starting point for your business and the help you need to get started can be totally unique to you. There’s a wide variety of uses for Start Up Loans, so chances are – you might be in luck!
The Start Up Loan scheme, first established in the UK in June 2012, is a programme that allows start up businesses (and businesses that have been trading for under 36 months) to secure a finance up to £25,000 to kickstart and invest in their business idea. A loan, not a grant, the Start Up Loan scheme allows new businesses to secure vital funds that will help them onto the next part of their journey.
As an official Business Support Partner and lender of the British Business Bank and the Start Up Loan Company, Let’s Do Business Finance helps start up businesses in the South and East of England to fuel their ambitions through the Start Up Loan scheme, and takes pride in our people-first approach – seeing a new business for its potential and the person behind the business, too.
Almost every Start Up Loan application is unique. From your business plan, to your plan on how to use the finance, and how you plan to repay, and more. As a new or budding business owner, you might be wondering if a Start Up Loan is right for you, and if it’s the right route to take depending on your business goals. Because of this, we’ve broken down some of the many ways you can use a Start Up Loan for your business – many of which our past clients have done, and are now fully fledged successful enterprises!
Here are just some of the ways you can use a Start Up Loan:
1. Developing your product
You might have a great idea for an innovative and new product that you want to take to market, but don’t have the personal finances to get going on this yourself. You can use a Start Up Loan to begin developing and prototyping your product, so you have a tried and true product to start selling. Coming under this as well, you could use your Start Up Loan to undertake market research for your product or service, to make sure of the viability of your idea and work out any kinks before you launch.
“I needed the initial start up capital for initial development and production of the robes.”
2. Creating your digital presence, from your website to apps!
Depending on the target market for your new business, you might decide that a top-tier website or an app is the best way to engage with your customers and sell your product. If you don’t want to try your hand at making your website or app yourself, and feel like you need expert help, you can use a Start Up Loan to invest in paying a web design agency or developer to create it for you. You can also use it to invest in other related services like Search Engine Optimisation (SEO) to make sure your new business hits the ground running.
3. Securing a premises and home for your business
Whether you want a physical home for your business and you’re trying to open up a shop, warehouse or a café, or you need a dedicate office to accommodate a growing team, a Start Up Loan can give you the cash injection to secure it and make it fit for purpose. Leases, mortgages and rent can be pricey, (not to mention redecorating!), so a Start Up Loan for this purpose can give you the security and peace of mind you need in your first few months of trading, so you can work on growing your business!
“In the end, the (Start Up) Loan bought us the lease for our premises.”
4. Equipment, machinery, and technology
Depending on the type of business you’re trying to start and grow, you might need specialised machinery, technology and equipment to use to get started. And these might be pricey! Whether it’s new IT equipment for your team, or a special pizza oven for your new restaurant, a Start Up Loan allows you to purchase the equipment and assets you need if you can show that these items are vital to the growth and scale of your new business.
5. Expanding your team and hiring staff
Sometimes, you’ve got to invest to grow. With a Start Up Loan, you can secure the finance you need to hire and train new staff members for your start-up business, and have peace of mind about theirs (and your!) wages while you all work to get your new business off the ground.
6. Building up your inventory ahead of launch
You might have a new business that is hotly anticipated – and know that when you launch, it might take a while to restock again. To keep up with expected demand and make sure your stock levels are just right, you can use a Start Up Loan to purchase initial inventory for your business so that things can keep moving as they should.
As unique as your business might be, your potential use for a Start Up Loan can be unique too! Whatever your business idea might be, a Start Up Loan could be the key that could help to turn it from an idea into a reality – and all it takes is asking the question.
