Start-Up Loan Scheme Expanded In 2013

The year 2012 was full of talk of recession, double dips and companies shutting up shop due to the world’s poor economy. In 2013 the UK government has set aside £112 million to help young entrepreneurs get a start on the business ladder. The loans of £2,500 per company might not help you start the next Apple or Google but they will give young start-ups the help they need to buy laptops, some marketing or a small amount of stock.

In a recent interview with James Caan, he said that this scheme could create in the region of around 100,000 new jobs, which would in turn elevate the current unemployment rate. Many limited company formation websites will more than likely see a rise in applicants with this new incentive. The £2,500 up for offer has received numerous remarks that it is not enough to make a difference, however the entrepreneurs will receive a lot of mentoring and business advice along with their money.

The mentoring and advice that these new businesses will receive will probably outweigh the £2,500 tenfold. Fans of Dragon’s Den will often here companies wanting not only the Dragons’ money but also their expertise and access to their contacts, as it’s more often who you know than what you know in business. While the uptake is currently slow the scheme will certainly take off as publicity grows and also by other entrepreneurs turning their £2,500 into another success story.

The whole process of starting a company can be a nightmare itself. Things such as sorting out the limited company formation, registering a website address and sorting out tax returns can be challenging. However, this start up scheme seems to have steps in place to help reduce this stress. The loan itself does not have a lot of interest attached compared to the interest charged by high street banks. The interest rate is the rate of inflation plus 3% and must be paid back within 5 years.

What this scheme does do is encourage young individuals with aspirations to be the next James Caan, Richard Branson or Bill Gates; to actually have a crack and not just to sit back and dream. This scheme has currently backed over 400 businesses and has aspirations of backing 100 businesses a week, which is very ambitious, even by James Caan’s standards.

It is very good to see the government putting its money where its mouth is and helping the UK economy grow while encouraging youth employment.

This article was written by Rita Simons about limited company formation on behalf of companyformations123.co.uk