Starting up
How long does a Start Up Loan last? One to five years, and how to choose
A Start Up Loan lasts one to five years. Here is how the term you pick changes the monthly cost, and why you can still clear it early at no extra cost.
A Start Up Loan lasts one to five years. You pick the term when you apply, and you repay monthly at a fixed rate. A shorter term costs less interest in total. A longer one costs less each month.
Section 01
How long does a Start Up Loan last?
One to five years. You repay monthly, and the length depends on your affordability and your preference.
So the term is a choice rather than a fixed rule. It is also the main thing you control about the monthly cost.
Figures correct as at 12 September 2026.
Section 02
Short term or long term: how to choose
A short term clears the debt sooner. You pay less interest in total, but each monthly payment is larger.
A long term does the opposite. The monthly payment is smaller, and the total interest is higher, because you are borrowing for longer.
Neither answer is right on its own. The right term is the one your quietest trading month can carry, not your best one.
Start with your worst month
Look at the quietest month you expect in the next year. The payment has to clear in that month too.
Put the payment into a forecast
Write the monthly figure into a 12-month cash flow forecast before you commit. myplan, our free tool, builds that forecast by asking you plain questions. A payment that looks small on its own can still tip a slow quarter.
Do not stretch the term without a reason
Every extra year is another year of interest. If the shorter term clears comfortably in your quiet months, take it.
Section 03
What does it cost while you are repaying?
The interest rate is fixed for the whole term, so your monthly payment does not change. There are no fees for applying for or receiving a Start Up Loan, and no application fee.
Representative example: £10,000 over 60 months at 7.8% APR: monthly payments £200.45, total interest £2,027, total repayment £12,027. Put your own amount and term into a forecast for your figure.
Check the date on anything else you read. The fixed rate changed on 6 April 2026, so older guidance can still show a different number.
Section 04
Can you pay a Start Up Loan off early?
Yes, and it costs you nothing extra. A Start Up Loan has no application fee and no early repayment fee.
That changes how the term choice feels. Picking five years does not commit you to five years of interest. It sets a monthly minimum, and you can clear the balance early at no extra cost.
“A longer term locks me into paying more interest”
Only if you run the full term. There is no early repayment fee, so you can settle the balance as soon as you can afford to.
Pick the term your quietest month can carry. You can always finish sooner.
If you are still deciding how much to ask for, our guide to how much you can borrow covers the per-founder cap. The rate and eligibility guide covers who qualifies.
Section 05
Where bizbritain fits in
We are a Start Up Loans Business Support Partner. Your bizbritain adviser carries out the full assessment against the scheme's three tests: eligibility, affordability and viability. Our Start Up Loans finance partner runs its final checks, issues the loan agreement and provides the funds.
Most of our applicants who submit a finished application are approved within one to two weeks. The fastest can be approved in as little as a week. Timing depends on any further work the documents need, prompt replies to information requests and the finance partner's final checks. Once approved, the loan can be drawn down within 24 hours. The part you control is the paperwork.
Work out the payment you can carry before you pick a term, not after. That is what myplan is for. It builds the business plan, the personal survival budget and the 12-month cash flow forecast from plain questions. The workbook itself takes around 30 minutes rather than days or weeks, and it is free for every bizbritain applicant.
If you have decided to go ahead, start with our page on applying for a Start Up Loan. Our eligibility check takes about a minute and involves no credit search.
This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.
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