Best business loans for startups in the UK

• Cash flow challenge: New business owners often need access to funding to launch or expand, but limited trading history or credit data can make it hard to secure support from traditional banks.

   

• Perfect for: Startups, sole traders, and early-stage business owners looking for accessible funding to support growth, equipment purchases, or working capital.

Novuna helps startups access fast, flexible finance to fund new business opportunities either through our award-winning in-house service or by comparing providers to make sure you get the right deal for your needs.

Boost your cash flow Speak to an expert

Fund your startup with flexible finance

Launching a new business often requires upfront investment, whether for premises, stock, marketing, or hiring. Finding finance that fits your stage of growth can be difficult, especially when banks prefer established trading history.

That’s where tailored startup funding comes in. From government-backed schemes to alternative lenders like Novuna, there are multiple options available for new businesses looking to build momentum and manage cash flow confidently.

Top startup loan options in the UK

Here’s an overview of some of the most popular funding routes for UK startups today.

While start up loans are ideal for those in the earliest stages, Novuna’s business and working capital loans provide more flexibility for startups already trading and scaling.

How to apply for startup finance

1. Prepare a business plan and cash flow forecast
   
   Show how funds will be used and how the business will generate revenue.
   
   
2. Decide how much funding you need
   
   Estimate your start-up costs and working capital requirements realistically.
   
   
3. Check eligibility
   
   Most lenders require you to be UK-based with a viable trading or growth plan.
   
   
4. Submit your application
   
   Provide financials, ID, and (if needed) a personal guarantee.
   
   
5. Receive funds and ongoing support
   
   With Novuna or the UK Start Up Loan scheme, funds are often released within days of approval.

Alternatives to startup loans

1. Working capital loans
   
   Short-term funding to support day-to-day costs, payroll, and supplier payments. Explore working capital loans to maintain liquidity during growth.
   
   
2. Merchant cash advances
   
   Repay a fixed percentage of your daily card sales, making repayments easy to manage. Ideal for retail, hospitality, and online startups. Discover merchant cash advances for flexible repayment terms.
   
   

3. Invoice finance

   Unlock up to 90% of the value of unpaid invoices to keep cash flowing while waiting for customers to pay. Learn more about invoice finance for early-stage B2B businesses.
   
   
4. Asset finance
   
   Fund essential equipment, technology, or vehicles without paying the full cost upfront. Find out how asset finance can support your setup and expansion.

Benefits of business loans for startups

• Access to capital when it matters most: Get funding for stock, equipment, or marketing.
• Build business credit: Establish a financial history for future borrowing.
• Keep personal and business finances separate: Protect your personal credit score.
• Flexible repayment terms: Align repayments with your revenue and seasonality.
• Support for early-stage growth: Many lenders, including Novuna, offer funding within days.

Boost your cash flow Speak to an expert

Best lenders and funding sources for startups

How Novuna Business Cash Flow can help

We can help quick start your start up with our tailored advice and loan offerings - speak to our experts today to help you make the right decision for your situation.