Starling Bank business loans

Starling stopped offering its own business loans

Starling's business account gives you a UK business current account with no monthly fees, invoicing, spending analytics, tax Spaces and fee-free UK payments. It doesn't include a loan of its own.

Starling did lend to businesses in the past. It launched an unsecured business term loan in January 2020, and the British Business Bank accredited it as a lender under the government's Coronavirus Business Interruption Loan Scheme (CBILS) and, from June 2021, the Recovery Loan Scheme (RLS). Both schemes have closed to new applications, and Starling's help centre now only covers managing balances that are already open.

Rather than build a new lending product, Starling chose to work with a specialist lender. For business loans, that's us.

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Starling has partnered with iwoca to offer business loans

If your business is eligible, you'll see the option in your Starling app and in Starling online banking, and you can start your application there.

Four things worth knowing:

• We lend you the money, not Starling. Starling isn't responsible for the lending, and you'll manage your loan with us.
• Your funds go into your Starling account by default. Starling fills in those details to save you time, and you can change them to another business account if you'd rather.
• You'll manage everything with us. That covers your loan terms, your repayments, your details, asking for a top-up, and getting help.
• Starling earns a commission on successful applications. We pay it, so it doesn't change the price of your loan.

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You start in Starling and finish with us

1. Check your business details. Starling asks you to confirm your business information is up to date. If it isn't, update it at Companies House first.
2. Say how much you need. Tell Starling how much you'd like to borrow and your estimated annual turnover.
3. See your offers. If we can make you an offer, Starling sends you over to us to look at your options and finish your application.
4. Get your money. Once we've run our final credit and identity checks and you've signed, we send the funds to your account. It can arrive within minutes – our quickest application to money in the bank took two minutes and 37 seconds.

Your offer stays valid for 30 days. If it runs out you can apply again, though we might not be able to offer you the same terms.

You'll need to be a UK-registered limited company

To be eligible for an iwoca loan through Starling, your business must:

• Be a UK-registered limited company.
• Have up-to-date information on Companies House.
• Have at least one UK-based director aged 18 or over with a UK credit file.

A few other things to know:

• Sole traders aren't eligible for an iwoca loan through Starling.
• You'll need to give a personal guarantee. The director who applies agrees to this as part of the application, which means they're personally liable if the business can't repay.
• You can ask for a top-up. Our loans are flexible, so you can apply for more during your term – usually once you've repaid a certain share of the original amount.

We check eligibility automatically. If your business is eligible, Starling lets you know in the app or in online banking.

Starting an application won't affect your credit score

When you apply, we share information about your business and the people connected to it with credit reference agencies so we can run credit and identity checks.

• We only run a personal credit check on you if you're the applicant or you're guaranteeing the loan. Where we do run one, it's a soft search: it won't affect your credit score, and other lenders can't see it, though you'll see it on your own file.
• We run identity checks on directors and beneficial owners either way. These don't affect your credit score, and other lenders can't see them.
• We run a credit check on your business. This leaves a footprint on your business's credit file that other lenders may be able to see.

If you decide to go ahead with an offer, we will report it on your credit file. We also report how you use and repay the loan, which could affect your credit score.

For more on how we work with credit reference agencies, see sections 2, 4 and 5 of our customer privacy policy.

Repay early and we won't charge you a fee

We collect your repayments automatically by Direct Debit, which we set up as part of your application. You can repay early at any time, and we don't charge early repayment or overpayment fees.

We work out interest daily on what you still owe, so paying your balance down ahead of schedule brings the total cost down too.

You don't need a Starling account to borrow from us

We work with any business bank account registered to your company, so you don't need to switch or open anything new.

• Borrow up to £1m, with terms up to five years.
• See what you could borrow in minutes – try our business loan calculator.
• 70% of applicants get a decision instantly, and you can draw your funds as soon as we approve you.
• Repay early whenever you like, with no fees for doing it.

You'll need to give a personal guarantee, and the cost depends on your business – we'll show you the full terms before you commit to anything.

Other ways to fund your business

A loan isn't always the right answer. Depending on how your business earns and spends, one of these may suit you better:

• Invoice finance releases cash tied up in invoices you've sent but haven't been paid for yet.
• A merchant cash advance takes repayments as a share of your card takings, so they flex with your sales.
• Asset finance spreads the cost of equipment or vehicles over time.
• Crowdfunding and peer-to-peer lending raise money from investors or other businesses, sometimes in exchange for equity.

Common questions

Does Starling do business loans?

Not its own. Starling has partnered with us, and we provide the loans to eligible Starling business customers. Starling isn't the lender.

Who lends me the money?

We do. Starling isn't responsible for the lending, and you'll manage your loan with us.

Can I get one as a sole trader?

No – only UK-registered limited companies are eligible for an iwoca loan through Starling.

Do I have to bank with Starling to borrow from iwoca?

No. We work with any business bank account registered to your company. Going through Starling is just quicker if you already bank there.

Do I need to give a personal guarantee?

Yes. The director who applies gives one as part of the application, so they're personally liable if the business can't repay.

Can I manage my loan in the Starling app?

No. Because we provide the loan, you'll manage it with us – repayments, top-ups, changes to your details and any help you need.

Does Starling get paid if I take a loan?

Yes, Starling earns a commission on successful applications. We pay it, so it doesn't change what your loan costs you.

Who do I contact for help?

Us. Call 020 3397 3375 or email support@iwoca.co.uk.

What happened to Starling's Recovery Loan Scheme and Bounce Back Loans?

Both government schemes closed to new applications. Starling's help centre still covers managing balances that are already open.

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