Starting up

Can a limited company get a Start Up Loan? No, but its founders can

A Start Up Loan for a limited company is a personal loan to each founder. How the money gets into your company, and the Companies House step to take first.

Reading time 5 min read

Category Business guides

Written by The bizbritain team

If you want a Start Up Loan for a limited company, the loan goes to you, not to the company. A Start Up Loan is an unsecured personal loan, and each founder applies as an individual. You then put the money into your company, either as a loan from you or in return for shares.

There is one more step if you are a director. You must verify your identity with Companies House before you act as one. This guide sets out a sensible order for all of it.

Section 01

Why is a Start Up Loan for a limited company personal?

Start Up Loans are personal loans for business purposes. The scheme wants founders to be personally invested in their business, so the loan is made to you as a person.

That has three practical effects for a limited company:

The company cannot apply. Each founder applies in their own name.
Each founder can borrow from £500 to £25,000, up to £100,000 per business.
The repayments are yours. You repay the loan personally, even if the company has a hard year.

Your business does not need to be registered with Companies House before you apply. So you can apply before or after you set up the company.

Section 02

Verify your identity with Companies House first

Since 18 November 2025, new directors have had to verify their identity with Companies House before they act as a director. Existing directors must verify when they file the company's next confirmation statement.

This is now being enforced. According to the Insolvency Service, three directors were fined at City of London Magistrates' Court on 16 September 2026. These were its first convictions for identity verification offences.

So do this early. It can be done online, and it means nothing holds up the company once the loan money arrives.

Section 03

Can you lend the money to your limited company?

Yes. There are two common ways to move the money from you to the company.

A director's loan. You lend the money to the company. You must record it in your director's loan account. The company pays no Corporation Tax on money you lend it. If you charge the company interest, that interest counts as income for you.
Buying shares. You pay the money in and receive shares in the company. The money becomes part of the company's capital rather than a debt it owes you.

Which route suits you depends on your tax position and your plans for the company. That is a question for your accountant, and it is worth asking before the money moves.

Section 04

A simple order to follow

Step 1

Verify your identity

Every director verifies with Companies House before acting as a director.

Step 2

Apply as yourself

Each founder applies for their own Start Up Loan, with a business plan, a personal survival budget and a cash flow forecast.

Step 3

Move the money in

Lend it to the company or buy shares, and make sure your business plan says how the money will be used.

Step 4

Keep the records

Record a director's loan in the director's loan account. Keep your own repayments separate in your personal budget.

If you run your business on your own rather than through a company, our guide for sole traders covers your route.

Section 05

How bizbritain helps with the application

As a Start Up Loans Business Support Partner, we help you prepare the application and carry out the assessment. myplan, our free workbook for every bizbritain applicant, builds your business plan, personal survival budget and 12-month cash flow forecast. It takes around 30 minutes rather than days.

Most applicants are approved within one to two weeks of submitting a finished application. The fastest can be approved in as little as a week. Timing also depends on any further information we need and on the finance partner's final checks.

You can start with a 60-second eligibility check, which involves no credit search. The formal application does include a credit check, and that is a hard search. When you are ready, find out more about applying for a Start Up Loan with us.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.

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