4.1 Start up loans
There are many places to get a start up loan – from the UK Government and local authorities to banks and small business associations. Gough (2018) lists some of the pros and cons of taking out a start-up loan:
Pros – Terms and conditions are clearly defined, the interest is usually fixed and you have access to resources such as a network of mentors and key people.
Cons – Market validation and proof of concept are most likely required to secure a loan. You will need to provide promising sales and earnings reports. You might also be limited in how and where you can spend your money.
Remember – this is a loan not a grant, so you will be expected to pay it back.