Funding & Support
Explore the Options for Funding Your Business
There is support available to help you launch your business – you just need to know where to look
Starting a business does not always require large amounts of money, but some business ideas need funding for equipment, stock, vehicles, premises, marketing or other startup costs.
There is no single funding route that suits every business. Depending on your circumstances and business idea, your options could include a government-backed Start Up Loan, grants, commercial business finance, investment, crowdfunding or your own savings.
This page brings together some of the main routes available to UK startups, along with official resources and StratoWrite guidance to help you research your options.
Government-Backed Start Up Loans
A Funding Option Designed for New and Early-Stage Businesses
The UK Government-backed Start Up Loans programme is one of the first options worth investigating if you need funding to start or develop a relatively new business.
As of August 2026, eligible applicants can borrow:
- £500 to £25,000
- at a fixed interest rate of 7.5% per year
- repayable over 1 to 5 years
- with no application or setup fee.
The loan is an unsecured personal loan for business purposes, so the individual receiving the loan is personally responsible for repaying it.
The scheme is available to eligible people starting a UK business and businesses that have been trading for up to 60 months. Successful first-loan applicants can also receive 12 months of free mentoring and support.
Where several qualifying owners or partners are involved, each can potentially apply for up to £25,000, subject to individual assessment, with a maximum of £100,000 available to one business.
What will you need?
The application assessment considers areas including your business idea, affordability and the viability of the business. Applicants are normally required to prepare a business plan, cash-flow forecast and personal survival budget.
Preparing Your Business Plan
A clear business plan can help you organise the information needed for a funding application and explain how your business will operate, attract customers, generate income and use the funding.
StratoWrite Ready-Made Business Plans provide a detailed starting point for specific UK business ideas, while our Custom Business Plans can be created around your individual business and funding requirements.
Grants and Government Business Support
Search for Funding You Do Not Necessarily Have to Repay
Business grants can be attractive because they generally do not operate like normal loans, but they are usually offered for a specific purpose and can have strict eligibility requirements.
Funding can depend on factors such as:
- Your business location
- Industry or sector
- Business stage
- Innovation or research activity
- Job creation
- Environmental improvements
- Age or background of the founder
- The specific project you want to fund
There is not one general UK startup grant available to every new business.
The official GOV.UK Find a Grant service allows you to search current government grants and check eligibility and application information.
GOV.UK also operates a wider Finance and Support for Your Business search covering loans, grants, equity and business-support schemes.
Business Loans & Finance Options
Explore Other Finance Options Carefully
Government-backed funding is not the only route available. Banks, specialist lenders and business-finance providers offer different types of commercial finance for eligible businesses.
Depending on the business and what the funding is needed for, options can include:
- Business loans
- Asset finance
- Equipment finance
- Vehicle finance
- Working-capital finance
- Invoice finance
- Business credit facilities
Eligibility, interest rates, fees, security requirements and repayment terms can vary considerably between providers.
Before applying, consider how much you actually need, what the finance will cost in total, whether the repayments are affordable and what happens if your business performs below expectations.
Explore Your Business Finance Options
The British Business Bank provides independent guidance on the different types of finance available to UK businesses, helping you understand how options such as business loans, asset finance and other forms of funding work before deciding what may be suitable for your circumstances.
Investment and Crowdfunding
Funding Does Not Always Mean Borrowing
Some businesses may be better suited to raising investment rather than taking out a loan.
Equity investment involves an investor providing capital in return for ownership of part of the business. This can include angel investors and, for some higher-growth businesses, venture-capital investment.
Equity crowdfunding allows businesses to raise investment from multiple investors through regulated online platforms. It can provide access to a wider investor audience, but raising money this way still involves preparation, due diligence and no guarantee that the funding target will be reached.
Other forms of crowdfunding may involve rewards or pre-selling products rather than giving investors shares.
Investment is not suitable for every small startup. A self-employed cleaner or mobile hairdresser may have very different funding needs from a technology company intending to scale nationally.
Check and Understand Your Credit Position
Prepare Before You Apply for Credit
Your credit history can form part of a lender’s assessment, particularly where you are applying personally for finance or providing a personal guarantee.
There is no single credit score that guarantees approval. Different lenders use their own criteria and may also consider affordability, income, existing borrowing and the details of the application.
Before applying for finance, it can be useful to:
- Check your credit report for incorrect or outdated information.
- Correct any errors you find.
- Make sure you are registered to vote at your current address.
- Pay existing credit commitments on time.
- Avoid making several full credit applications within a short period.
- Use soft-search eligibility tools where available before making a formal application.
- Consider checking information held by more than one credit reference agency, as the information can differ between agencies.
Checking your own credit report or credit score does not normally affect your credit rating because it is treated as a soft search.
Check Your Credit with Experian
Experian allows you to check your Experian Credit Score for free without reducing your score. You can also use the service to understand some of the factors affecting your credit position and check the information held about you.
Independent Guidance from MoneyHelper
MoneyHelper provides free, impartial information explaining how credit reports work, how to check your credit information and practical steps that may help strengthen your credit position before applying for finance.
Support When Moving from Benefits into Self-Employment
Starting a Business While Receiving Universal Credit
If you receive Universal Credit and are considering self-employment, there are specific rules governing how your business and earnings are treated.
If the Department for Work and Pensions considers you gainfully self-employed, you may be eligible for a start-up period of up to 12 months.
During an eligible start-up period:
- Your actual monthly self-employed earnings are used when calculating Universal Credit.
- The Minimum Income Floor does not apply.
- You receive support from a work coach trained to work with self-employed claimants.
- You will normally need to attend regular appointments and show that you are actively working to develop the business.
Eligibility is decided by Universal Credit, and not every self-employed claimant automatically receives a start-up period.
If you receive other benefits, starting a business can affect your entitlement differently, so check the rules that apply to your own circumstances before making changes.
Moving from Benefits to Business?
Our Benefits to Business Guide brings together information for anyone considering the move from benefits into self-employment, including the areas to investigate and useful official sources.
Free Local Business Support
Find Business Support in Your Area
Funding is only one form of support available when starting a business. Depending on where you live, you may also be able to access free advice, workshops, mentoring, local programmes and specialist business support.
England
For businesses in England, Business.gov.uk is the online home of the government’s Business Growth Service and provides guidance and access to local business support.
Scotland
Find Business Support and Business Gateway provide information about business advice, funding and local support programmes.
Wales
Business Wales provides guidance, support and information for people starting and growing a business.
Northern Ireland
Go Succeed, Invest Northern Ireland and NI Business Info provide information about startup support, funding and business development.
The support available will vary depending on your location, business type and eligibility, so it is worth checking the relevant service for current programmes in your area.
Turn Your Funding Research into a Business Plan
Understanding your funding options is only one part of preparing to start a business.
A detailed business plan can help you work through your business model, customers, startup costs, pricing, marketing, operations and financial forecasts before deciding how much funding you may need.
Choose a Ready-Made Business Plan for a specific UK business idea, or submit your requirements if you need a Custom Business Plan created around your own circumstances.