EFG, Enterprise Finance Guarantee with Loan Finance
It allows businesses with a turnover of up to £25 million to apply for loans between £1,000 and £1 million to support new loans, refinance existing loans or to convert all or part of an existing overdraft into a loan that is repayable over a period of up to 10 years to meet the business’ working capital demands.
The Enterprise Finance Guarantee scheme can also provide a top-up guarantee on invoice finance facilities to support the advance that was agreed with the Lender.
- Businesses in most sectors are eligible to apply for the
Enterprise Finance Guarantee (EFG)
- Supplied through a lender, the government initiative guarantees 75% of the loan to lower the risk to the lender, increasing the likelihood of lending through the Enterprise Finance Guarantee. (EFG)
- The EFG can be provided alongside other funding solutions such as an invoice finance facility.
In addition to regular capital and interest payments to the lender, plus any arrangement fee, a premium will be payable to the Department for BERR.
This is equivalent to 2% per annum on the outstanding balance of the loan, assessed and collected quarterly in advance throughout the life of the loan.
Typically,you will need to provide all the information normally required by a lender in connection with a loan application, which will generally include the following supporting information:
- a current business plan, including details of the purpose for which the loan is required and details of other investment in and financial commitments of the business;
- financial projections;
- historic trading figures;
- statutory and management accounts;
- Information on any other publicly funded support received by your business within the past three years.
To find out more about the Enterprise Finance Guarantee
Contact us today via our online enquiry form for a confidential talk.
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