You can spend a Start Up Loan on the costs of starting or growing the business set out in your plan, such as equipment, stock, premises and marketing. A few uses aren't allowed, including paying off existing debts.
What it can pay for
- Equipment and tools
- Stock and materials
- Premises costs, such as a deposit, rent or fit-out. See Evidence required to fund premises.
- Marketing, such as a website, advertising or signage
- Working capital to keep the business running while sales build up
Whatever you spend it on, it should match the costs in your business plan and cash flow forecast.
What it can't pay for
- paying off existing debts, including refinancing other borrowing
- training, qualifications or education courses
- investments that aren't part of running an ongoing business
The business itself must also be eligible. See Eligibility: which businesses and loan purposes are excluded?.
Big-ticket purchases
If one item takes up most of the loan, check whether other finance would suit it better. Our guide covers this: Can I use a Start Up Loan for stock or equipment?
Last reviewed: 8 October 2026