The status of women in the business world is quite prominent now.
Moreover, women have power in almost every industry. Starting from small start-ups, many businesses have reached heights.
It is possible only because of the ladies’ constant hard work and smart decisions.
However, small business start-up loans can greatly support starting a new venture. They help women to overcome the fund’s crisis and implement innovative ideas.
Rose Review generated a report on the position of women entrepreneurship in the global business world. The number of women entrepreneurs is growing significantly worldwide.
You can find at least one woman among three owners.
This content will throw light on the top five startup loans, especially for women entrepreneurs. Find all the details and get encouragement to start something of your own.
Top 5 Small Business Startup Loans for Women
Often, you have to look for suitable fund sources to set up a new business.
Many organisations offer attractive loans, especially for women-led enterprises. Some of these small business start-up loans are as follows:-
1. HSBC Small Business Loan
HSBC offers competitive rates for small businesses. Usually, the repayment tenure varies between one to ten years.
Moreover, there is no minimum trading period when you borrow funds up to £25,000. The payment options are highly flexible. You can apply for such a loan even if you are not an account holder of HSBC Bank.
Pros
- Small partnerships and sole proprietors are exempt from giving security
- Minimum turnover is not required
- Competitive rates for APR
Cons
- Limited companies must give a personal guarantee
- Two month’s interest payments as an early repayment fee
2. Start-Up Loan for British Business Bank
The representative rate of this start-up loan is 6%. Furthermore, it is one of the best small business start-up loans for women. It has a 5-star rating from Forbes Advisor.
The borrower has the option to repay the monthly amount of over 60 instalments. However, this loan is primarily applicable to not-for-profit businesses.
Pros
- No personal guarantee
- Arrangement fee not required
- Fixed-rate of interest
- No penalty for overpayments
- Mentoring available for business
Cons
- The maximum loan amount is £25,000
- Eligible businesses should be below 36 months old
3. Metro Bank Small Business Loan
The small business start-up loans from this bank have a tenure of one to five years. The annual interest rate is 9.6% per annum (fixed rate).
Moreover, you can borrow up to an amount of £60,000. Fees for early repayment are applicable. You must give private property as security for borrowings.
Pros
- Competitive fixed rate of interest
- The arrangement fee is not there
- The maximum loan amount is £60,000
Cons
- Borrower must be a current account holder at Metro Bank
- Fees applicable for early payment
- Personal guarantee required
4. Lloyds Small Business Loan
Lloyds provides small business start-up loans from £1,000 to £50,000. You have flexible options to repay the borrowed amount within 25 years.
The facility for unsecured and secured loans is present. Moreover, it does not charge any additional fee for paying off the amount before the term. The customers can get prompt services at all times.
Pros
- No repayment fee for early payment
- Suitable web-based support is available
- Loans can be secured or unsecured
- Availability of Prompt customer care assistance
Cons
- Personal guarantee required for limited companies
- Small business loans are available only for businesses having turnover below £3 million
5. Barclays Unsecured Business Loan
You will have great help from the Barclays in case of unsecured business loans. It provides loans to be repaid within 5 years at the most.
Furthermore, the loan amount is up to £100,000. The current representative APR is 9.90%. Various sectors can get specific borrowing solutions from this bank.
A special facility for repayment holidays of 6 months is available for some businesses.
Pros
- Tailored borrowing solutions for different businesses
- Borrowers have the option to select between variable or fixed interest rates
- A 6-month repayment holiday available for some businesses
- An online customer support facility is there
Cons
- Detailed information about the existing customers is necessary
- Business phone lines are accessible for 5 days only
- Unsecured loans may not be available for a few industries
FAQ
Can I get special women’s business loans from any NBFC in the UK?
Yes, you can get such loans from UK-based NBFC, depending on the type of your business.
What is the maximum amount of loan I can borrow for startups?
The maximum amount of loans for startups can vary as per respective banks. It can be £5,000 in some cases, while £65,000 in other cases.
Conclusion
The options for the best small business start-up loans for women are pretty diverse.
Moreover, you will get customised solutions in the UK financial market to meet the business objectives.
Thus, if you are thinking of starting a new venture, do not hesitate to apply for exclusive loans.
Banks like Lloyds, Metro Bank, British Business Bank, HSBC Bank, and Barclays provide several facilities for small businesses.
Besides, they frame suitable loans to help the customers significantly. The rates are affordable and ensure that you get sufficient time for payment.
However, you may sometimes have to pay extra for early payment of the loan.
Therefore, select your loan option and utilise the funds to start your new business. You may also get appropriate facilities to expand your existing small business.
