Frequently Asked Questions

You can apply for a government start up loan if you are 18 or older, live in the UK, have yet to start trading (or started trading less than 24 months ago), and will be selling in the UK.

This depends on the lender, and your unique circumstances. A lender will perform a thorough check of the business and your personal finances, which will take time to complete - having your financials and documentation, such as bank statements and tax returns, can speed up the decision process. Once approved, the loan money can be in the account in days.

If you can get a credit card with a high enough limit, then a credit card could be an option when considering buying a car. However, you should always check with the dealer you intend to buy your car with a credit card, and this will be an acceptable form of payment.

Remember that the interest rates on a credit card will likely be higher than a car loan. If you plan to use a credit card with an interest-free period, make sure that you can pay off the balance before the interest-free period ends. Before taking on debt, take some time to research options available and evaluate your finances to make sure you can take on the additional costs.

If you haven't yet taken out the loan, there are several ways to lower your car loan repayments. The first is to borrow less - either by putting more of your own money towards the purchase as an initial outlay or by choosing a cheaper car. You could also discuss with your lender about paying back the car loan over a more extended period to reduce monthly repayment amounts (although this will likely result in you paying more for your loan over time).

If you have already taken out the loan, it is good to discuss any changes to your requirements with your lender to understand what is possible. This could include making a lump repayment in the future towards the balance of your loan to reduce the amount owed. However, whether you can do this depends on the terms and conditions of your loan and the lender's policies. Thus it's good to think about possible changes you may want later on and check with your lender before applying or accepting a loan that these will be possible.

This will depend entirely on the terms of your loan and your lender's policies. If this is something you would like to have the option to do, speak to your lender before agreeing to take out a loan to understand what is possible and there are no negative consequences or costs to you.

Missing repayments on a secured loan can put your possessions at risk and have serious consequences. Late payments will also affect your credit score and be marked on your credit file.

If you have trouble making repayments, speak to your lender to see if they can help. Do this early and before failing your repayments. If you are still struggling and need help, you can contact Citizens Advice, Step Change, and Money Helper.

UK lenders and credit providers must make sufficient checks to ensure a loan is affordable. This will often include a credit check at some point during the application process. A credit check will show a lender if you have a lot of outstanding debt and late payments, or if you're potentially experiencing financial difficulties. It's likely other checks will be performed - for example a short term lender may request bank statements to check you have enough coming in to pay for your current bills and make the loan repayments.

Applying for lots of loans or other forms of credit in a short period of time can have negative consequences on your credit rating. However, some lenders will initially offer a “soft credit check” before performing a full credit check and lending money to you. Soft credit checks will be able to predict with some accuracy whether or not you will be accepted for a loan. Soft checks don’t have an impact on your credit score.

You can find more information on credit searches in our guide: hard credit checks vs soft credit checks.