Business Enterprise Fund (BEF): products, terms and eligibility

Business Enterprise Fund (BEF) is a UK provider of unsecured business loans. The legal entity named on its site is Business & Enterprise Finance Ltd (trading as Business Enterprise Fund). It gives its founding year as 2004.

Business Enterprise Fund (BEF) says it has operated since 2004 helping businesses in the North of England start, sustain and grow. It describes itself as a not-for-profit Community Development Finance Institution. It operates through two FCA-authorised entities: Business & Enterprise Finance Ltd trading as Business Enterprise Fund and BEF NE (2) Ltd. It lends in Yorkshire & The Humber, the North East and the North West.

In its own words on scale:

• Says that since 2013 it has invested £129.5 million directly into small businesses (figure on its site in October 2026).
• Says it has supported and funded 5,809 clients and created or safeguarded 17,610 jobs since 2013 (figures on its site in October 2026).

Everything on this page comes from what Business Enterprise Fund (BEF) publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Business Enterprise Fund (BEF) publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.

• Start Up Loan (British Business Bank programme): Fixed interest personal loan for business use; no early repayment fee.

Momentum Small Business Loan

A loan of up to £250,000 over terms of up to 5 years for businesses trading 6 months or more in Yorkshire & The Humber, the North East or the North West. A personal guarantee is required and additional security may be required depending on circumstances. Uses include working capital, growth, equipment, recruitment, premises and refinancing. It does not lend to founders or directors with active CCJs, IVAs or bankruptcy, and excludes gambling, adult entertainment and mining.

Start Up Loan (British Business Bank programme)

A government-backed personal loan under the British Business Bank programme for people starting a business or trading for up to 60 months, with repayment terms of one to five years. Individual founders can borrow £500 to £25,000, and multiple founders up to £100,000. The page says the loan needs no security and can be repaid early without penalty, and successful applicants get 12 months of free mentoring. Applicants must be 18 or over, UK-resident with the right to work, and pass credit and affordability checks; bankruptcy, DROs, outstanding IVAs and debt management programmes disqualify.

NPIF II Smaller Loan

Its broker page lists NPIF II Smaller Loans of £25,000 to £100,000. No dedicated product page was read, so further terms are not recorded here.

Business Enterprise Fund (BEF) says its finance is used for:

• Working capital
• Business growth
• Equipment purchase
• Recruitment
• Premises
• Refinancing existing borrowing

Sectors and business types it says it funds:

• Start-ups, small businesses and growing enterprises in Yorkshire & The Humber, the North East and the North West

What it says it does not fund:

• Momentum loans: gambling, adult entertainment and mining
• Momentum loans: businesses outside Yorkshire & The Humber, the North East and the North West; Scotland is not currently served

Business Enterprise Fund (BEF) publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Momentum loans: businesses trading 6 months or more.
• Start Up Loans: new businesses or trading up to 5 years; applicant 18 or over and a UK resident.
• Business based in the North of England (Yorkshire and the Humber, North East, North West).
• No active CCJ, IVA or bankruptcy for a founder or director (Momentum).
• Not lending to businesses based in Scotland or in gambling, adult entertainment or mining sectors.

Business Enterprise Fund (BEF) describes its process like this:

1. Brokers complete an enquiry form to join the lending panel.
2. The broker discusses the case with a dedicated Loan Manager before referral.
3. The case is introduced through a formal referral.
4. The application is assessed against lending criteria by people rather than an algorithm.
5. For Start Up Loans: complete an initial form, discuss plans with an adviser, prepare a full application, then receive a decision.

Information it says it asks for:

• Accounts
• Bank statements
• Forecasts
• Open Banking information where appropriate

Every application is subject to status and the lender’s own criteria at the time.

An unsecured business loan is a fixed sum repaid in instalments over an agreed term, without a charge over a specific asset. Most lenders still ask the directors for a personal guarantee, which makes them personally liable if the company cannot repay.

Lenders price each loan on the business’s trading history, turnover and credit profile, so the offer you receive can differ from the published range. Compare the total cost in pounds and the repayment pattern, not only the headline rate: our guide on how to compare business loan lenders shows how.

Points Business Enterprise Fund (BEF) publishes that are worth knowing:

• A personal guarantee is required for a Momentum loan; additional security may be required.
• Start Up Loans require no security and come with 12 months of free mentoring.
• Start Up Loan is a government-backed personal loan for business purposes.
• NPIF II lending is supported by Nations and Regions Investment Limited, a subsidiary of British Business Bank plc.
• Core lending is in the North of England; broker-introduced clients are also supported in London.

Security and guarantees

Momentum loans require a personal guarantee and may need additional security. Start Up Loans are described as needing no security and allowing early repayment without penalties. Momentum loans are described as carrying low early repayment fees.

Business Enterprise Fund (BEF)’s site states: “Business & Enterprise Finance Ltd t/a Business Enterprise Fund is authorised and regulated by the Financial Conduct Authority, reference number 726237. BEF NE (2) Ltd is authorised and regulated by the Financial Conduct Authority, reference number 717726.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of unsecured business loans with profiles here include Credit4, Cubefunder and Federal Capital. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.