{"id":32695,"date":"2024-01-18T16:14:45","date_gmt":"2024-01-18T16:14:45","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/uk\/blog\/how-to-get-a-startup-loan\/"},"modified":"2024-08-22T11:14:42","modified_gmt":"2024-08-22T11:14:42","slug":"how-to-get-a-startup-loan","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/business-loans\/startup-loans\/how-to-get-a-startup-loan\/","title":{"rendered":"How to get a startup loan"},"content":{"rendered":"

Every business founder should investigate whether a startup loan is right for them.<\/h2>\n

Startup loans are a great way for a business to launch with a bang: worth up to $25,000 per company director, they are offered at a competitive rate of just 6 percent (at time of writing, January 2024) and often come with mentoring and professional advice.<\/p>\n

If your business is less than three years old, you should consider this as a source of funding.<\/p>\n

Let\u2019s look at what you need to have in place to apply and how to maximise your chances of success.<\/p>\n

Before you apply<\/h2>\n

Craft a solid business plan<\/strong>: a well-written business plan demonstrates your viability and seriousness to lenders. You\u2019ll find plenty of resources and templates online to help you map out your business idea, market analysis, financial projections, and marketing strategy.<\/p>\n

Assess your financial needs<\/strong>: it\u2019s important to have a plan about how you will use the money. Show how much capital you need for things such as operations, equipment, inventory, and marketing. Overestimating can see you saddled with unnecessary debt, while underestimating can hold back your growth.<\/p>\n

Boost your credit score<\/strong>: a strong personal and business credit history will stand you in good stead for future borrowing and indicates the general health of your business. Lenders (and potential future investors) consider your credit score to be a key indicator of your ability to manage finances responsibly.<\/p>\n

Explore funding alternatives<\/strong>: Startup loans should be considered alongside other sources of funding such as personal savings, family and friends, crowdfunding<\/a>, and professional investors. You may also wish to investigate grants<\/a> which are awarded to businesses that solve particular problems (usually in research, innovation or sustainability).<\/p>\n

Applying for the loan<\/h2>\n

Swoop can help you at every stage of the journey.<\/p>\n

When you sign up to Swoop<\/a>, open banking technology will save you hours of time by identifying products that are right for your business and automatically completing forms with securely shared information.<\/p>\n

Lenders will typically want to see:<\/p>\n