Has the bank turned you down for a loan? The Government has set up a scheme called the Enterprise Finance Guarantee scheme. The loans are available through the main high street banks but come with a 75% guarantee from the government. The borrower is still liable to pay back 100% of the loan but the bank may lend to applicants who do not have security available. More information can be found here.
Here are a few of the key points:
- The guarantee is available to many types of business
- Agriculture type businesses are usually offered a maximum of £100,000 over 5 years or £50,000 over 10 years
- The business must be in the UK
- There is a 2% annual charge paid to the government annually on the reducing balance of the loan.
- The lender still needs to be happy with the applicants business plan and ability to service the repayments
If you need help with an application and or the business plan here at Green and Co we offer this service to a number of our clients.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net