Government Start-Up Loan
If your business is either brand new, or you’ve been trading for less than 24 months, you might be able to secure a Start Up Loan backed by the government.
Start Up Loans are unsecured personal loans of amounts up to £25,000. The loan must be used for your business only, and is repayable at a fixed interest rate of 6%. To find out whether you are eligible, check online.
Overdraft from the bank
A bank overdraft can be handy for businesses that have uncertain income streams. It provides fast and flexible cashflow when you need it. Using it sensibly can pay off. For example, you should use it when income is less steady and then as soon as business picks up, pay it off.
Many banks only charge interest on the amount that is overdrawn and some offer specific packages for new businesses. Be aware that interest rates on bank overdrafts are generally above base rates of interest.
Read the full article on the Turner Little Blog.
