If you’re looking to do something new in 2025, you may be thinking about starting a new business.

There are many ways to secure funding when embarking on a new venture, such as business loans from a bank, crowdfunding or even enlisting the financial support of family and friends. 

However raising money can often be challenging, for example banks may require security conditions like a personal guarantee or may only lend to businesses that have been trading for a while.

Another option is to consider the government-backed Start Up Loan scheme, which offers personal loans to individuals aiming to start or grow a business in the UK.

These loans are unsecured, meaning there is no need to provide assets or a guarantor to support the application. If you are approved for the loan, you will be matched with a business mentor for a 12-month period.

Business owners or partners can each apply for loans ranging from £500 to £25,000, with a maximum total loan of £100,000 per business. The typical loan amount is between £5,000 and £10,000. The scheme offers a fixed interest rate of 6% per year, with flexible loan repayment terms of 1 to 5 years. There are no application fees or early repayment penalties.

To apply for the loan, you must meet the following criteria:

• You live in the UK 
• You are 18 years of age or older 
• You own (or plan to start) a UK-based business that has been trading for less than 36 months.

If you would like more information about starting a new business and how to finance this, please get in touch.

Internet link: GOV.UK