People start their own business for a number of different reasons, but the most popular reason I come across is for FREEDOM. Indeed, they have a great idea and have identified a gap in the market, but ultimately they want the freedom of running their own business and doing things their way. However, thinking about starting a business and actually starting a business are two very different things. It takes time and a lot of hard work to get your idea/ product off the ground. The first major hurdle for many is to secure the funding needed to launch the business and make it a success. Therefore, the first stop is the bank and we all know these are notoriously tough at providing business loans, halting many at the first stage of their new venture.
If you find yourself in this situation, all is not lost as the government provides a start-up loan scheme, which helps those aged over 18 secure a loan if, and only if, they have already been declined by the bank.The government is offering full support for these loans as they see that they are “absolutely vital for the future of our country’ (David Cameron).
The Start-Up Loans Scheme
The start-up loan scheme was introduced to simply help people start a business through providing low cost loans and free mentoring support from business experts.
To get started you will be assigned a Partner by the Start-Up Loans Company who will help you develop your business plan for free before it is reviewed by the Start-Up Loans Company. The average loan size is £5,207, but successful applicants can receive anything from £500 – £25,000 (depending on their needs). Once this loan has been agreed applicants will have access to expert mentors, free training courses and business offers. This is a great way to get that initial cash injection. However, you must remember that this is a loan and will need to be repaid over an agreed term of between 3 and 5 years. Useful Links:
To get started or to find out more, visit the Start-Up Loans website. The Raffingers Stuart Start-Up service.