Fund your start-up
Hardly any start-up gets by without money. Which source suits you depends on the amount, the risk and the stage. In the UK, several government-backed schemes make the start easier – here is the overview.
Own funds before borrowing
Your own savings – or money from family and friends – are the basis. The more you put in yourself, the easier it is to borrow and the more independent you remain. Many founders also start part-time or as a sole trader to keep their capital needs low.
Loans and guarantees
Banks lend for predictable investments, often with security or a personal guarantee from directors. Start Up Loans offer £500 to £25,000 per person at a fixed 7.5% for new loans since 6 April 2026, repayable over one to five years, for businesses trading for less than five years – with up to 12 months of free mentoring. Under the Growth Guarantee Scheme, the British Business Bank partly guarantees loans from accredited lenders.
Grants and investors
Grants are competitive and project-based: Innovate UK funds innovation projects through competitions, and local and regional schemes are listed by your Growth Hub. For high-growth companies, business angels and venture capital are options. Through SEIS and EIS, investors receive tax relief on investments in qualifying companies – a strong argument in your pitch.
Frequently asked questions
How much of my own money do I need?
There is no fixed rule. Lenders want to see that you share the risk; for a Start Up Loan a credible plan and cash flow forecast matter more than a minimum amount. Your own contribution strengthens every application.
Which grants and schemes are there in the UK?
Start Up Loans with mentoring, the Growth Guarantee Scheme, Innovate UK competitions, regional programmes via Growth Hubs, Business Gateway, Business Wales and Invest NI, and SEIS and EIS for equity investors. Many grants require match funding and a solid business plan.
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