Yes, a Start Up Loan can help with both. You can use it towards buying an existing business, or towards starting a franchise. The same limits apply: up to £25,000 per person, and the business must meet the usual criteria.
Buying an existing business
- The 60-month clock starts when you take over. It doesn't matter how long the business traded under its previous owner, as long as you haven't owned it for more than 60 months.
- You'll need its accounts, so the assessment can see how it has been performing.
- If it's been losing money, your plan needs to show how you'll turn that round.
Starting a franchise
Franchises are eligible, and you get the same 12 months of free mentoring as any other borrower. Your plan should cover the full cost of starting, including the franchise fee, fit-out and working capital, and how the Start Up Loan fits alongside any other funding.
If the price is more than the scheme allows
£25,000 per person (up to £100,000 per business with partners) may not cover a larger purchase. See How much can I apply for?, and for franchises our franchise finance page.
Last reviewed: 8 October 2026