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Starling Bank offers business loans to small- and medium-sized enterprises (SMEs) in the UK. Loans are between £25,001 to £250,000, and can be borrowed over one to six years.
To be eligible, businesses must operate as either a limited company or limited liability partnership, and must have been trading for more than 24 months.
You don’t need to have a Starling Bank business account to apply for a business loan, but if your application is successful, you will have to open an account and transfer your business banking to Starling.
Starling Bank Business Loans
Available on application
£25,001 – £250,000
1 – 6 years
Available on application
NerdWallet's Review Summary
Starling Bank offers unsecured business loans of between £25,001 and £250,000 to small- and medium-sized enterprises (SMEs) in the UK. Businesses need to operate as either a limited company or limited liability partnership in order to be eligible, and they must also have been trading for at least 24 months. Learn more by reading NerdWallet’s Starling Business Loans Review.
Starling business loans key features:
- Small businesses can borrow up to £250,000: Starling business loans start at £25,001 and can go up to £250,000.
- Variable loan terms: Starling business loan terms span from 12 to 72 months.
- Early repayment: Starling borrowers are not penalised if they repay their loan early.
- Not for sole traders: Starling’s loans are only available for limited liability companies and partnerships.
NerdWallet's Pros & Cons
Pros
- Your small business can borrow a maximum of £250,000 with a Starling unsecured loan.
- Businesses can borrow for between one and six years with a Starling unsecured business loan.
- Starling provides 24/7 customer service through live chat on the app, email and telephone support, while also responding to queries on its X account (formerly Twitter).
- There are no early repayment fees if you want to repay your loan before the term ends.
Cons
- Starling business loans are not available to sole traders.
- You are required to provide a personal guarantee when taking out a Starling business loan.
- At £25,001, the minimum amount you can borrow with a Starling business loan is much higher than most other lenders.
- There is no face-to-face support as Starling has no branches.
- If you are successful in your application, you will need to open a Starling business account and make it your primary business banking service.
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Key features
- Small businesses can borrow up to £250,000Starling business loans start at £25,001 and can go up to £250,000.
- Loan term of one to six yearsWith a Starling business loan, you can borrow over 12 to 72 months.
- No early repayment feeYou will not be penalised if you want to repay your loan early.
- Limited liability companies and partnershipsStarling business loans are only available to limited liability companies and partnerships, meaning sole traders cannot apply.
Starling Bank business loans pros & cons
Pros
- Your business can borrow a maximum of £250,000 with a Starling unsecured loan.
- Businesses can borrow for between one and six years with a Starling unsecured business loan.
- Starling provides 24/7 customer service through live chat on the app, email and telephone support, while also responding to queries on social media platforms, such as Facebook and X (formerly Twitter).
- There are no early repayment fees if you want to repay your loan before the term ends.
Cons
- Starling business loans are not available to sole traders.
- You are required to provide a personal guarantee when taking out a Starling business loan.
- At £25,001, the minimum amount you can borrow with a Starling business loan is much higher than most other lenders.
- There is no face-to-face support as Starling has no branches.
- If you are successful in your application, you will need to open a Starling business account and make it your primary business banking service.
- Starling does not offer secured business loans.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business loans features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
Starling business loans full review
Starling Bank is relatively new on the British banking scene. It was founded in 2014 and began offering business accounts in 2018. The bank’s first in-house business loan was then launched in 2020.
The Starling business loan is an unsecured loan worth between £25,001 and £250,000, with loan terms ranging from one to six years.
To be eligible for a Starling business loan, you need to run a limited company or limited liability partnership in the UK that has been trading for 24 months.
You will also need to provide a personal guarantee as security. A personal guarantee means that, if your business is unable to repay the loan in full, it will become your personal responsibility to do so.
Interest rates are fixed for the duration of the loan, so your monthly repayments won’t change. There is also a one-off arrangement fee, currently 4% of the loan amount, payable on the date that you receive the funds.
Alongside business loans, Starling also offers overdrafts on its business bank accounts. These are available from £1,000 to £50,000 and also require a personal guarantee.
Starling business loans: at a glance
| Amount borrowable | £25,001 to £250,000 |
| Term length | Between 12 and 72 months (one to six years) |
| Web-based customer service | In-appEmail: [email protected] X (formerly Twitter): @StarlingBank |
| UK customer service number | 0207 930 4450 |
| App | Yes (iOS and Android) |
| Face-to-face customer service | No |
| Access to loans without pre-existing account | Yes (but you will need to open a Starling account if approved, and make it your primary business banking service.) |
Where Starling business loans stands out
Maximum amount borrowable: At £250,000, the maximum amount you can borrow with Starling is higher than with many other unsecured business loans.
No early repayment fees: Starling Bank will not penalise you if you want to repay your loan in full before the end of your term.
24/7 customer service: Starling offers 24/7 customer service over the phone, via email and via its in-app live chat.
Customer reviews: As a brand overall, Starling has an ‘Excellent’ rating on Trustpilot.
Where Starling business loans fall short
Minimum amount borrowable: At £25,001, the minimum amount you can borrow with a Starling business loan is higher than most other lenders.
Arrangement fees: You will need to make a one-off arrangement fee, costing 4% of your business loan.
Eligibility requirements: Starling business loans are only available to limited liability companies and partnerships that have been trading for at least 24 months. Sole traders are not eligible.
Personal guarantees: When applying for a Starling business loan, you will be required to provide a personal guarantee as security. This means you will be personally liable for the loan if your business cannot pay it back.
Need to switch business banking to Starling: If you do not already bank with Starling, you will be required to open an account and make it your primary business banking service if you are successful with your loan application.
Starling business loans customer reviews
Starling’s customers have left reviews on a range of sites. Generally, these reviews are very positive.
It is important to note, however, these reviews are from both its personal and business customers.
- App Store: 4.9, based on over 433,00 reviews.
- Google Play: 4.8 out of 5, based on over 102,000 reviews.
- Trustpilot: 4.3 out of 5, based on over 36,600 reviews.
This information is correct as of 4 August 2023.
Starling business loans eligibility
In order to be eligible for a Starling business loan, you will need to:
- be based in the UK, and your business must trade in the UK
- be a limited liability company or limited liability partnership
- have been trading for at least 24 months
- be willing to open a Starling business account and make it your primary banking provider
- be willing to provide a personal guarantee
You will also need to pass Starling’s viability test to ensure you can afford to repay the debt, alongside the fraud and credit checks it carries out during the application process.
» MORE: Guide to business credit scores
How to apply for a Starling business loan
When applying for a Starling business loan, you will likely need to complete the following steps:
- Decide how much money you want to borrow, and for how long.
- Apply for a Starling business loan on the lender’s website. You’ll need to be a director or partner of the business who is authorised to make decisions for the business in order to do so.
- Provide personal and business information during the application process, including your company registration number with Companies House and information about your business accounts, such as your latest profit and loss statement and a balance sheet. You’ll also need the previous six months’ worth of bank statements if you don’t currently bank with Starling.
- Allow Starling to carry out its viability assessment, including fraud and credit checks.
- Wait to hear whether your application has been successful. If you are successful and do not have an existing Starling business account, you will need to open one and make it your primary banking service.
» MORE: How to get a business loan
Review methodology
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Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
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