A few queries regarding startuploans.co.uk...

[cdr1010]

Hello,

First time posting on here but I have been lurking for a while

I'm interested in setting up a new ecommerce business - whether this is the right or wrong time is not really a concern. I think there is plenty of opportunities out there and there will continue to be, particularly in the industry I want to enter.

I would be going into this as a first time business owner and I'm considering applying for a business loan from startups.co.uk - this would be to fund initial inventory and some other minor costs. I reckon my first couple of sales can be done organically without spending anything using social media/my own network and I can build the website myself as I'm a bit of a techie.

In terms of startuploans.co.uk reviews, they look pretty crap but a lot of reviewers seem bitter about being rejected. Has anyone had any experience with them? Positive & negative?

I'd be interested to hear how you got on and if you have any tips to increase my chances of getting a loan. I'm not sure what their lending criteria is in the current climate.

Finally, I've read these are unsecured government backed loans. Does this mean if it all goes tits up no ones going to come knocking on my door or take my own assets?

I thought if the worst comes to the worst then I can at least sell all the inventory and recover my costs. The only cost, which I can cover as a director, would be the interest on the loan which on a loan amount of £5000-10000 it wouldn't be too much.

Any thoughts?

 

[Chris Ashdown]

Banks or other organisations are looking for you to put in at least 50% of the required money, there thought is if you have no faith in the enterprise why should they risk their money

The start up loans guaranteed by the government for 80% sound great but what it really means is that the bank lends you 100% and has a guarantee from the government for 80% of that amount, the bank first come after you for 100% of the loan which is normal and may require a personal guarantee over the loan. If in the long term the bank cannot get its money back they claim 80% from the government

If you buy £10000 of goods at trade price, you will find that in a distress sale by auction you will most likely only get a few percent of that paid, for clothing and the like 10-15% of the trade value would be a good sale

If you dont have the money to start the sad fact is you will go bust as cash flow will drag you down, just having a web site and social marketing seldom works

 

[Mark T Jones]

Start Up Loans is a personal loan so you are personally on the hook for 100%. (Rightly so in my opinion)

The application process is quite bureaucratic but relatively straightforward as long as you can put together a simple but credible business plan

the loan itself is an exceptional deal - far better than you’d get from a bank.

ignore the negative reviews - as you suggest they are from people who were too lazy to put a decent plan together.

incidentally @Chris Ashdown is confused and is talking about a different facility

 

[Chris Ashdown]

Sorry did not know there was a new one, thinking it was the same one from a few years ago

 

[Mark T Jones]

Sorry did not know there was a new one, thinking it was the same one from a few years ago

you’re thinking of EFG, which has been replaced by CBILS

Start Up Loans is a separate scheme which isn’t delivered through the banks

 

[JEREMY HAWKE]

Start Up Loans is a personal loan so you are personally on the hook for 100%. (Rightly so in my opinion)

The application process is quite bureaucratic but relatively straightforward as long as you can put together a simple but credible business plan

the loan itself is an exceptional deal - far better than you’d get from a bank.

ignore the negative reviews - as you suggest they are from people who were too lazy to put a decent plan together.

incidentally @Chris Ashdown is confused and is talking about a different facility

I thought that all bank borrowings had the director on the hook now except for the free money bounce bank loan that you can pay if you are in a good mood

 

[Mark T Jones]

I thought that all bank borrowings had the director on the hook now except for the free money bounce bank loan that you can pay if you are in a good mood

Start Up Loans isn't a bank facility; but it is a personal loan, so the borrower is on the hook for 100%

BBL - as you say is a non-recourse grant with a repayment option

CBILS has no PGs upto £250K; potentially 20% PG over £250K

 

[JEREMY HAWKE]

As one of you money men said a couple of weeks ago
Its a mucky business !

 

[Gordon - Commercial Finance]

As one of you money men said a couple of weeks ago
Its a mucky business !

It is indeed

 

[cdr1010]

I've not got an established business so I presume the grants in relation to COVID are out of bounds haha

From what has been said then, startuploans.co.uk is worth pursuing due to low rates. I have a decent job so I can cover the loan if the worst comes to the worst, I'm not looking to borrow an huge amount.

Might be worth stumping up some cash myself and see if I can prove the business first and then use startuploans to grow (if they let you do that?)

 

[Mark T Jones]

Always best to use your own resources where possible

sUL is available for up to 2 years trading

 

[cdr1010]

Always best to use your own resources where possible

sUL is available for up to 2 years trading

Cheers Mark - up to two years is good to know.

 

[Porky]

@cdr1010

I have used the startup loans facility to secure capital for a new business where I needed capital support for initial cash flow so I have first hand experience of the scheme.

They agreed a loan over 60 payments at 6% and they even gave me the first three repayments at interest only to help further support cash flow. It’s a really good facility imo but you are on the hook for the loan as stated here. There are no PGs or security required so it’s better than anything you would get from a bank or elsewhere in the market, I really rate them!

Like you I read the negative reviews online and was worried but now see they are from rejected applicants. I would say the biggest pain in the a@@ is the work involved in the submission.

The initial registration and soft credit check is quick online within minutes and will pass or fail you that’s the easy bit. It then asks you to submit your business plan, CFF, personal finance statement and proof of ID but you can save the work in progress and return to it later.

I used their templates. The business plan template is standard format but it still took me about three days to do, concept, the market, competitors, SWOT analysis etc, it’s not rocket science but they want to make sure you have a proper business worth funding imo and it will take time to do it properly unless you have that already done?

For the CFF they have another template it wasn't massively detailed and very straight forward. You could submit an excel spreadsheet, I would say that if you have a proper thought out business plan they will back you, they actively want to support businesses imo but equally I bet they have to sift out some real junk ideas. If you spend the time to get your plan right they will know you mean business!

Once you have completed your plans you upload them. They then get looked at by a partner service who will actually let you know if you are missing any details or need to add anything else. If you need to clarify anything further you have chance to add and upload to them. They will then submit the loan and provide the terms to you - it’s that simple.

So my advice would be if you have a decent business idea , submit the application, go for it. I would probably apply for more funds than you think you might need. Businesses always hit some issue and most start ups underestimate cash flow requirements.

For a small start up loan of up to £25k I think it’s a cracking facility. I can’t see anywhere else providing an unsecured loan at a better rate than 6%. I think those negative reviews really are individuals with weak business ideas and frankly if they can’t put a decent business plan together startuploans are probably right to reject them.

Good luck to you

 

[cdr1010]

@cdr1010

I have used the startup loans facility to secure capital for a new business where I needed capital support for initial cash flow so I have first hand experience of the scheme.

They agreed a loan over 60 payments at 6% and they even gave me the first three repayments at interest only to help further support cash flow. It’s a really good facility imo but you are on the hook for the loan as stated here. There are no PGs or security required so it’s better than anything you would get from a bank or elsewhere in the market, I really rate them!

Like you I read the negative reviews online and was worried but now see they are from rejected applicants. I would say the biggest pain in the a@@ is the work involved in the submission.

The initial registration and soft credit check is quick online within minutes and will pass or fail you that’s the easy bit. It then asks you to submit your business plan, CFF, personal finance statement and proof of ID but you can save the work in progress and return to it later.

I used their templates. The business plan template is standard format but it still took me about three days to do, concept, the market, competitors, SWOT analysis etc, it’s not rocket science but they want to make sure you have a proper business worth funding imo and it will take time to do it properly unless you have that already done?

For the CFF they have another template it wasn't massively detailed and very straight forward. You could submit an excel spreadsheet, I would say that if you have a proper thought out business plan they will back you, they actively want to support businesses imo but equally I bet they have to sift out some real junk ideas. If you spend the time to get your plan right they will know you mean business!

Once you have completed your plans you upload them. They then get looked at by a partner service who will actually let you know if you are missing any details or need to add anything else. If you need to clarify anything further you have chance to add and upload to them. They will then submit the loan and provide the terms to you - it’s that simple.

So my advice would be if you have a decent business idea , submit the application, go for it. I would probably apply for more funds than you think you might need. Businesses always hit some issue and most start ups underestimate cash flow requirements.

For a small start up loan of up to £25k I think it’s a cracking facility. I can’t see anywhere else providing an unsecured loan at a better rate than 6%. I think those negative reviews really are individuals with weak business ideas and frankly if they can’t put a decent business plan together startuploans are probably right to reject them.

Good luck to you

What a fantastic reply, it's always great to hear from people who have had direct experience in their own personal circumstances. Appreciate the time taken to write that!

 

[Porky]

What a fantastic reply, it's always great to hear from people who have had direct experience in their own personal circumstances. Appreciate the time taken to write that!

More than welcome. A lot of good advice and opinion shared in this forum. It’s a great resource. All the best with your venture.

 

[HungryforBBL]

Banks or other organisations are looking for you to put in at least 50% of the required money, there thought is if you have no faith in the enterprise why should they risk their money

The start up loans guaranteed by the government for 80% sound great but what it really means is that the bank lends you 100% and has a guarantee from the government for 80% of that amount, the bank first come after you for 100% of the loan which is normal and may require a personal guarantee over the loan. If in the long term the bank cannot get its money back they claim 80% from the government

If you buy £10000 of goods at trade price, you will find that in a distress sale by auction you will most likely only get a few percent of that paid, for clothing and the like 10-15% of the trade value would be a good sale

If you dont have the money to start the sad fact is you will go bust as cash flow will drag you down, just having a web site and social marketing seldom works

Hello There - Should the applying company show 50% of the investment in the bank to apply tis loan ?

 

[Mark T Jones]

Hello There - Should the applying company show 50% of the investment in the bank to apply tis loan ?

No

 

[Kerwin]

I got funded via startup loans. If you have any questions then let me know.

 

[Sstephens94]

I got funded via startup loans. If you have any questions then let me know.

Hello, hope you don’t mind me jumping on.
I have a few questions, if you are able to answer them.
We’re currently going through the process. It’s taken months so far, just with us submitting everything then the advisor taking weeks and weeks to reply for a simple change, then weeks and weeks waiting for them to reply again.
How long from actually submitting the application did you hear if it was successful?
Did you have to make any changes when it came back, or was it accepted as is?
Thanks

 

[Kerwin]

Hello, hope you don’t mind me jumping on.
I have a few questions, if you are able to answer them.
We’re currently going through the process. It’s taken months so far, just with us submitting everything then the advisor taking weeks and weeks to reply for a simple change, then weeks and weeks waiting for them to reply again.
How long from actually submitting the application did you hear if it was successful?
Did you have to make any changes when it came back, or was it accepted as is?
Thanks

Hi,
As far as I can remember I submitted it at the beginning of December and got the money in late January or early February. I did have to make some changes. They advised me that the amount of money I was asking for was probably too high. After a bit of discussion, we lowered the amount requested. I also had to show evidence that I had people interested in the business (in my case an email mailing list that people had signed up for). You should get a phone call from your advisor to discuss specifics though.

In regards to what you said above have you perhaps approached a friend or a neutral party who you both trust and value the opinion of and get a second opinion? Also make sure your numbers add up. It is much easier to do this using an Excel template since it comes with all the calculations already in the spreadsheet.

When you say simple change, can you give me an example?

 

[Mark T Jones]

Hello, hope you don’t mind me jumping on.
I have a few questions, if you are able to answer them.
We’re currently going through the process. It’s taken months so far, just with us submitting everything then the advisor taking weeks and weeks to reply for a simple change, then weeks and weeks waiting for them to reply again.
How long from actually submitting the application did you hear if it was successful?
Did you have to make any changes when it came back, or was it accepted as is?
Thanks

I don't know who you are using, but an advisor should get back to you in a few days, not weeks.

To stress, due to the nature of the scheme it is very important that you present information in the way that they want, not how you want.

 

[Mark T Jones]

I am private lender with available 100% financing, if you might be interested in my service. I offer 100% Unsecured loan with 3% interest rate per annul for a period of 1-30% year + 5 months grace period and no early repayment fee.

My lending platform supports residential, bridge, commercial, refinancing, fix and flip, Refinance, rehab and personal loan , business loan , storage purchase etc NO prepayment penalty , kindly get back to me if you are interested in my services
Inbox me for more details

Please can you advise your FCA authorisation number?

 

[Red Wood]

I thought that all bank borrowings had the director on the hook now except for the free money bounce bank loan.

Not always, if you have assets they can place a charge against or very strong financials, BS etc. They will lend without director PGs. Not usually the case with micro businesses though.