Business start-up loans, mentoring and support

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Frequently Asked Questions

About the loans

What is the difference between a grant and a Start Up Loan?

The difference between a grant and a Start Up Loan is a Start Up Loan must be repaid.

Please ensure you have sufficient funds to meet your monthly loan repayments when they become due. Failure to repay the loan may result in your credit profile being adversely affected and may also result in recovery action being taken. If you have any difficulty in repaying your loan, please speak with our Finance Partner, Business Finance Solutions. Their Collections Team can be contacted on 0161 245 4900 or by email at SULT@b-f-s.org.uk.

How much can I apply for from Newable?

The minimum amount you can borrow is £500.

Start Up Loans of over £500, in increments of £500, are available. You'll receive free support to prepare your application and during the business planning process the amount needed will be agreed. The average Start Up Loan applied for from Newable and received is around £7,500.

Will I be charged for my application?

You will never be charged by Newable to make a Start Up Loan application.

When is a second credit check done and what impact would it have on my credit score?

If your loan application has not reached approval within 3 months a new credit check will need to be run to continue to review the application. This will leave two hard footprints on your file which may impact your credit score.

What can I use the loan for?

The loan can be used for any purpose for developing a viable business.

The purposes listed below would not be considered eligible for funding:

  • Purchase of a vehicle (unless an integral part of the business)
  • Funding for trips abroad, research and product development
  • Some forms of training (unless considered operationally necessary)
  • Refinancing of existing debt

We will not provide a loan for political or religious purposes or anything that will bring the Start-Up Loans Scheme into disrepute.

How long do I have to pay back my start up loan?

When you apply for the loan the term for repayment will be set between 1 and 5 years. You will make fixed monthly repayments paid via direct debit, so you know where you stand every month.

The loan can be repaid in full or part at any time during the repayment period.

Please ensure you have sufficient funds to meet your monthly loan repayments when they become due. Failure to repay the loan may result in your credit profile being adversely affected and may also result in recovery action being taken. If you have any difficulty in repaying your loan, please speak with our Finance Partner, Business Finance Solutions. Their Collections Team can be contacted on 0161 245 4900 or by email at SULT@b-f-s.org.uk.

What is the interest rate for a start up loan?

The interest rate is fixed at 6%.

Representative Example

Below is a representative example of how much you could be paying for a Start UP Loan. The amount we will lend will depend on your individual circumstances and the term for repayment will be set between 1 and 5 years.  .

You could borrow £5,500 over 5 years with 60 monthly repayments of £106.33. The total amount repayable will be £6,379.82 at 6% APR representative, and an Annual interest rate (fixed) 6%.

 

Are there any fees on top of this?

There are no additional fees.

What is the New Enterprise Allowance (NEA) scheme and how is it connected to the Start Up Loans scheme?

For all information about the New Enterprise Allowance (NEA) scheme and its connection to Start Up Loans, please refer to the NEA FAQs.

Can I only apply for one Start Up Loan?

Every individual can only apply for a Start Up Loan for one business. However, if, after successfully securing a Start Up Loan, you later require additional funding in order to grow and develop that same business, you may be eligible to apply for a second Start Up Loan. You would need to go through a new application process and must have made at least six months of full loan repayments prior to applying. In addition, your total outstanding loan balance cannot exceed £25,000 at any one time. For example, if you initially borrowed £20,000 and since then, repaid £10,000, you may be eligible to borrow up to a further £15,000 (subject to meeting all other eligibility criteria).

To check your eligibility for a second Start Up Loan, please call the Start Up Loan Client Services team on 0344 264 2600 for a short discussion about your business. Lines are open Monday to Friday from 9.00am – 5.30pm.

I have a visa allowing me to live in the UK, can I apply for the Start Up Loan?

If you are legally entitled to live and work in the UK you can apply for the startup loan. As a visa holder, it must be valid for at least six months beyond the repayment term for the loan.

I have been trading for more than 12 months, can I apply for the Start Up loan?

Loans are now available for businesses trading less than 24 months.

Can any type of business be eligible for a Start Up Loan from Newable?

Newable will provide loans to business in most sectors however there are some restrictions. For example, if your business is involved in gambling, pornography, or money transfer services etc., you may not be eligible for a loan from Newable.

When will I receive the loan?

You need to complete the application process which includes being assessed by the Newable start up loans panel (see the loan application process for details). Once your application has been approved, you will be issued with a set of loan documents from our Finance Partner, Business Finance Solutions. You will need to sign and date these.

Once Business Finance Solutions have received correctly signed and dated loan documents from you, the loan will be issued directly into your personal bank account.

Please do not commit any funds for your business until you have received the loan in your account.

Note you have the right to withdraw from the loan agreement within 14 days ('cooling-off period') of signing, without giving reason.

How can I complain?

We aim to achieve the highest standards, so we need to know if you are concerned or dissatisfied with our service.

Your complaints give us a chance to put things right when mistakes have been made and to improve the quality of our services.

We aim to communicate with people clearly, politely, and promptly. Please download our complaints procedure here, which sets out how we will handle your complaint.

Who is Business Finance Solutions?

Business Finance Solutions is Newable's finance partner. Newable assess client applications for the Start Up Loan and then refer these to Business Finance Solutions for the disbursement and collection of the Start Up Loans Scheme.

Business Finance Solutions (BFS) is the trading name for The Enterprise Fund Ltd (FCA Interim Permission Number: 523077).

 

 

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NewableStart-Up Loans

Newable Business Loans Ltd t/a Newable is authorised and regulated by the Financial Conduct Authority (FRN: 700160).
Newable Business Loans Ltd t/a Newable assess client applications and then refer these for the disbursement and collection of the Start-Up Loan to The Enterprise Fund Ltd t/a Business Finance Solutions (BFS) (FCA Interim Permission Number: 523077)
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