Business Loans

Government startup loans are one of the best funding options for entrepreneurs looking to launch or grow a business in the UK. With a fixed interest rate, flexible repayment terms, no collateral required, and free mentoring included, they offer a route to funding that most early-stage founders simply can't get from a high-street bank. But the scheme has changed. As of April 2026, the fixed interest rate has risen from 6% to 7.5%, and eligibility has been extended to businesses that have been trading for up to five years. Whether you're pre-revenue with a business idea or running a company that's been going for a few years, this guide walks you through everything you need …

I talk to founders every week who are stuck on the same question: how do I actually fund this thing? They've got the idea. Some have customers already. A few have revenue. But the gap between where they are and where they need to be costs money they don't have. And the funding landscape is noisy enough that most people don't know where to start — or worse, they apply for the wrong thing and waste weeks. So here's what I'd tell you if we were having this conversation over coffee. The government's Start Up Loans scheme changed in April 2026. The interest rate went from 6% to 7.5%. Eligibility expanded from three years of trading to five. And the scheme has now lent over £1 …

I've had both. An overdraft that sat unused for months then saved me when a client paid 47 days late. And a loan that funded a piece of the business I couldn't have built without it. They solved completely different problems, and choosing the wrong one would have cost me money. Most guides on this topic give you a tidy comparison table and leave it there. That's fine if you already understand both products. But if you're a founder trying to work out which one you actually need — or whether you need either — the real question isn't "what's the difference?" It's "what's the problem I'm trying to solve?" Here's how to think about it. The short versionAn overdraft is a buffe…

Business loans can be a powerful tool for funding growth, managing cash flow, or covering unexpected expenses—but they’re not always the right choice for every startup. The decision to take out a loan should be based on your financial position, business goals, and risk tolerance. Here’s a balanced look at the pros and cons to help you decide whether a business loan is the right move for you. ✅ When a Business Loan is a Good Idea Business loans can be a smart financial decision if used strategically and responsibly. Here are some scenarios where taking out a loan could benefit your startup: You Have a Clear Plan for Growth 📈 If you need capital…