Startup loans (UK)

Practical, repayable funding for early-stage UK businesses, including public programmes and regional loan options.

Most founders use startup loans to avoid dilution at the earliest stage.

If your repayments would be stressful or uncertain, you may be better off with equity or a smaller, lower-risk facility.

See UK providers

Startup loans can mean several things in the UK. Some are public-backed or regional programmes designed to support early-stage businesses. Others are lender products that require stronger evidence of cashflow or security. Use this page to understand whether startup loans are realistic for your stage, what terms to expect, and where to start looking.

At a glance

Best for	Pre-revenue or early revenue startups, especially UK-based founders seeking practical capital
Most common use	First repayable funding, bridging small gaps, hiring, regional expansion, initial capex
Typical ticket size	From small founder loans to multi-£m regional facilities (programme dependent)
Speed	Can be slower than private lenders (application and diligence varies)
Collateral / guarantees	Sometimes. Depends heavily on the programme and lender
Trade-off	Less dilution, but repayments and covenants can add pressure if cashflow is uncertain

Note: terms vary widely across programmes. Always confirm eligibility and security requirements before applying.

When startup loans are not the best fit

You have predictable revenue

If you have reliable monthly revenue (often SaaS), revenue-based financing may be a better match.

You have raised equity already

If you are seed-backed and extending runway, venture debt is usually the more relevant category.

You need equipment or infrastructure

If the funding is tied to assets (hardware, compute, equipment), asset finance is usually more suitable.

UK startup loan providers

A practical starting list. As you expand this, the goal is to capture eligibility requirements, not just names.

Early-stagePublic and regionalUK focus

Provider	Region	Typical ticket	Stage	Needs revenue	Notes
NPIF (Northern Powerhouse Investment Fund)	North of England	£25k to £2m (varies by product and fund manager)	Early to growth	Not always	Regional, delivered via partner fund managers. Terms vary by product and location.
Regional Growth Funds (varies by region)	UK regions	Varies	Early to growth	Sometimes	Often tied to job creation, innovation, or local economic development criteria.
Public-backed startup loan programmes	UK-wide (varies by programme)	Smaller tickets (often sub-£100k, programme dependent)	Very early to early	No	Some programmes are founder-led, some are business-led. Eligibility varies significantly.

As you add providers, include: minimum trading history, security or guarantee requirements, application timeline, and typical approval criteria.

Real examples from Startupmag

Real stories help founders understand how these programmes are actually used.

Freeklime used an NPIF loan to fund expansion without dilution

Public / regional loan programmes for early-stage UK businesses.

Read the story

FAQs

What is a startup loan in the UK?

On Startupmag, “startup loans” means repayable funding that is not primarily linked to venture-backed debt structures. This can include public-backed programmes, regional funds, and lender products designed for earlier-stage businesses.

Can I get a startup loan if I am pre-revenue?

Sometimes. Pre-revenue businesses are more likely to qualify via public-backed or regional programmes than commercial lenders. Eligibility depends on the programme, the region, and your business profile.

Do startup loans require personal guarantees?

Not always, but it is common in some products. Public programmes may be lighter on security, while commercial products can be stricter. Always check guarantee terms before committing.

What is the best startup loan in the UK?

There is no single best option. The best fit depends on your location, stage, and cashflow predictability. If you are very early, look at public or regional programmes. If you have predictable revenue, revenue-based finance may be a better fit. If you have raised equity already, venture debt may be more appropriate.

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