Once you can show that there’s a market for your idea, one option for funding your start-up costs is getting a bank loan. You’ll need to be able to:
- give the bank realistic cash flow forecasts
- prove that you’ll be able to pay back the loan with interest
Watch a video on forecasting business finances, including sales, profit and loss, and cash flow.
The bank might require you to provide security against your loan, like your house or car, in case you don’t repay. You should think carefully about how much risk you’re willing to take on before you get a loan or give any personal guarantees.
Find business finance in your area using the British Bankers’ Association’s finance finder tool, including business angels (individuals who invest in start-up businesses), regional funds, government schemes and banks.