Enterprise Finance Guarantee

No security? We could still help you through a government-backed scheme called the Enterprise Finance Guarantee.

The Enterprise Finance Guarantee (EFG) is a government-sponsored scheme open to small and medium-sized businesses.

This allows businesses to "buy" access to funds when the business/guarantors have insufficient security to secure the borrowing.

The government guarantee provides security for the lender, but the borrower is still liable for 100% of the debt.

You can access up to £1 million through this scheme – DSL offers a maximum of £30,000 at any one time.

The decision to lend lies with the lender's assessment of the borrower's ability to service the loan. The lender will also take into account the level of financial commitment that the people who control the business have.

EFG allows many other forms of security to be taken in addition to EFG, including personal guarantees. EFG cannot be combined with security over a main dwelling (your main home).

If you qualify for EFG, you need to pay a premium to the government, which helps contribute to the scheme (this is all set up by DSL). Paid quarterly to aid cash flow, the premium is based on 2% per annum on the reducing loan balance.

Please visit the below links to find out more about the EFG scheme.

http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/ex-efg/summary

http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee

To find out more, please contact us.