Starting up a new business is not a cake walk. It requires huge investment. External finances are always required to support a business project. Business Start Up Loan is a commercial loan scheme tailor made for such business investments.
Business Start Up Loan can be used for purchasing machinery, paying for legal documentation, transportation cost, recruitment of employees and their salaries and other expenses. This loan covers almost all expenses that are incurred while starting a new business.
Business Start Up Loan is available in both secured and unsecured forms. Secured loans require collateral to be pledged. The unsecured form offers businessmen to take loans without collateral. With this loan, an amount up to £250000 can be raised for repayment period ranging from 1 to 10 years.
Rate of interest offered in this loan is very attractive. The interest rate depends on the presence and absence of collateral but is always affordable to the borrower.
Bad credit borrowers having CCJs, IVAs, defaults, arrears, late payments and bankruptcies can also get business start up loan. They will, however, be charged slightly higher interest rates which they can counter by doing proper research. There are lenders who extend loans to such borrowers at low interest rates.
Entrepreneurs seeking business start up loans should first make a business plan to convince the lenders. The plan should have elaborate expenditure details so that the lender can understand what the requirements are. Partnership details, labour details, expected turnover and all such information should be put before the lender.
Going online will help borrowers to get this loan at competitive rates. A number of lenders are available online. Borrowers can get quotes from all of them and compare them to choose the best deal.