What can you use a Start Up Loan for?
A Start Up Loan can help you start or grow your existing business. We have supported over 40,000 businesses across the UK to get started and we could help you too.
The finance and mentoring we offer has been integral to the growth of a diverse range of new and existing ventures, from new dating apps to clothes shops and a whole host of new food and drink products among other things.
There are four main areas we've found that most loan recipients use their funding on: PR and promotion, purchasing new equipment and stock, product development and proof of concepts, and the cost of renting or buying premises.
The biggest challenge we faced when rebranding was the cost of marketing material. This is where the Start Up Loan was transformative. - Rosie Marteau co-founder of Yuyo
Set up costs
Administrative and set up needs can be costly when you are just starting out. However, this should not hold back your business ambitions.
Many Start Up Loan recipients have used their monies for this, from buying expensive technical equipment or software to simply buying enough stock to actually service the demands of their customers.
Rosie Marteau, who co-founded the yerba tea business Yuyo, was faced with the need for a large amount of new marketing materials after rebranding Yuyo.
She needed to print new flyers, have the new brand and artwork translated over the company website and social media, and was concerned about the cost.
Her Start Up Loan helped cover these costs, allowing Rosie and her business partner to bring the new Yuyo brand to the public.
Cash flow issues
Particularly in the early stages of a business, cash flow issues caused by late payments from customers or trying to fulfill large orders for customers can prove difficult for small businesses.
A Start Up Loan can be used to provide a cash flow injection to help the business grow and succeed.
New premises
One key set up cost for many growing businesses is leasing or purchasing premises. Having secure premises in a good location can help your business thrive and funding from a Start Up Loan can help.
David from ShortCuts Children's Salon used a Start Up Loan to secure premises for his first salon, which proved a great platform for growth.
I used a Start Up Loan for the initial set up of the business – solicitor’s fees, property deposit and general start up costs. - David O’Neal founder of Shortcuts salon
Getting your message out - PR and promotion
To be a success your business is going to need customers - your initial market research should have highlighted who these customers are. Attracting new customers to your business can be expensive.
Your loan could be used to help create your company brand, produce marketing collateral or even launch a marketing campaign.
We've created a guide on how to write a press release to get you started and remember, we have lots of advice on Marketing and Branding to help you further.
A website for your business
If you are planning on establishing an online business, you'll want your website to provide an easy customer journey for any visitors.
For more advice, we spoke to web design experts Create on how to build an effective online shop. Simple templates which can be customised for your specific business needs are relatively cheap, but if you intend to process payments online costs can rise.
For more ideas on how to market your business we asked loan recipient Jess Ratty, founder of the Cornwall Camper Company to giver her top tips on how to market your business.
Learn with Start Up Loans and help get your business off the ground
Thinking of starting a business? Check out our free online courses in partnership with the Open University on being an entrepreneur.
Our free Learn with Start Up Loans courses include:
- Entrepreneurship – from ideas to reality
- First steps in innovation and entrepreneurship
- Entrepreneurial impressions – reflection
Plus free courses on climate and sustainability, teamwork, entrepreneurship, mental health and wellbeing.
Disclaimer: The Start -Up Loans Company makes reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article.
The Start-Up Loans Company is not liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss, loss of income, revenue, benefits, profits, opportunity, anticipated savings, data. We do not exclude liability for any liability which cannot be excluded or limited under English law. Reference to any person, organisation, business or event does not constitute an endorsement or recommendation from The Start-Up Loans Company, its parent company British Business Bank plc, or the UK Government.
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