What is the Enterprise Finance Guarantee?

The Enterprise Finance Guarantee (EFG) has now been largely superceded by the Recovery Loan Scheme, albeit it is still available.

The EFG is a government initiative to help small businesses that don't have enough security obtain the finance they need from lenders.

The Government provides a guarantee to the lender for 75% of the outstanding debt and this can be enough reassurance for the lender to turn a "no" into a "yes". You must still convince the lender that you have a viable business and can repay the loan.

Guarantees are available on most lending products for amounts of between £1,000 and £1.2m and over terms of three months to 10 years.

A Guarantee Fee of 2% of the outstanding sum is payable each year to the government in addition to any interest and charges that you must pay to the lender.

There are more than 40 EFG accredited lenders in the UK, from High Street banks to alternative lenders and we can introduce your requirments to most of them.

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