Yes. bizbritain can arrange a tranched loan. You're approved for the full amount, draw part of it now, and take the rest later if your business needs it. You only pay interest on the money you've actually drawn.
How it works
- One approval for the full amount, up to £25,000 per person.
- The first part is paid out when your loan starts.
- The second part is available later, if you need it. You don't have to take it.
Why choose it
- Certainty: the full amount is agreed upfront, so you know it's there.
- Lower cost: you don't pay interest on money you haven't drawn.
- Flexibility: it suits plans that spend in stages, for example fitting out premises first and buying stock later.
The interest rate
Both parts are charged at the same fixed rate, the one set in your loan agreement. See What's the interest rate, and can it change?.
A tranche isn't a second loan
The second part of a tranched loan is part of the same approved loan. A second loan is a new application, with its own criteria. See Second loans: how do I apply for a second Start Up Loan?.
How to ask for it
Tell your advisor when your application is being prepared. Your plan and forecast should show when you'll need each part. Your advisor can also tell you how long you have to draw the second part.
Last reviewed: 8 October 2026