The money you need, just when you need it

Customise your Start Up Loan

Instead of receiving your Start Up Loan in one lump sum, and having to pay full repayments against it from the very beginning of your business journey, tranches are a way to split your approved loan into two separate part-payments. 

Tranche one: paid when your loan is approved

Tranche two: paid when you need it.

  • Minimise your risk. Borrow what you need upfront, and the remainder when your business needs it - so you’re never taking on more than you need.
  • Lower your monthly repayments whilst your business is finding its feet. You’ll only be repaying against the value of the loan you’ve received, instead of that full value from day one.
  • Make it easier to stick to your plans, and manage your funds so they pay for the things your business needs to be a big hit.
  • Have a contingency in place, without the need for further credit checks.

How does it work in practice?

Fiona's fabulous cafe

Fiona's just bought her fabulous cafe - but it's looking a bit tired...

She's going to refurbish it, stripping out the old kitchen and replacing it with better equipment. The whole place will be decorated, and kitted out with furnishings as fabulous as the name. Once the refurbishment is completed, she'll get the business open and trading.

She needs £10,000 for the kitchen refit, £5,000 for decoration and furniture, and £3,000 to stock the cafe up ready to make sales.

Her loan for £18,000 is approved:

Payment one: immediately, £15,000 to refit and refurbish the cafe.
Payment two: when the refit is complete and the cafe is ready to open, £3,000 for stock.

It takes four months to get the cafe ready to open. In that time, Fiona's loan repayments were minimised, and when she came to open she still had her full £3,000 available to buy stock to launch with her full menu.

Startup loans calculator

We hope you’ve found this guide to customising your loan helpful.

Transmit Startups are the UK’s biggest provider of Government-backed Start Up Loans. We’ve lent over £75m to help 7,000 people start businesses. If you are interested in getting affordable finance to start your dream business, find out how much you could borrow with our startup loan calculator.

Startup loans calculator

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