Loan guarantee
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The loan guarantee exists to enable small businesses with a viable business plan, but lacking security, to borrow money from approved lenders.
To help get your business off the ground you may need an injection of capital or cash to help grow your business once it’s established. For instance, you may want to buy or update equipment, move to bigger premises or expand your operation into new markets. In cases like this conventional finance sources, such as a business loan or overdraft, are not always available because your business may be too young to qualify, or you can’t offer normal security.
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[edit] UK
[edit] Small Firms Loan Guarantee
The Small Firms Loan Guarantee (SFLG) can lend up to a maximum of £250,000 pounds to UK companies trading less than 5 years with a turnover of less than £5.6 Million.
If your business is under 5 years old and your turnover (revenue) is not more than £5.6million, you may be eligible for funding under Small Firms Loan Guarantee.
SFGL is a tool that allows businesses to raise finance, through most highstreet Banks, with 75% of the loan’s value guaranteed by the Government via the Department of Trade and Industry (DTI).
- Borrow flexible lump sums: from £5,000 to £250,000.
- Spread repayments over two to ten years.
- Variable or fixed rate interest terms are available depending on your circumstances.
- An early repayment charge is payable if you close a fixed rate loan early.
- Apply for a capital repayment holiday up to a maximum of two years.
- Flexible draw down arrangements (where total loan is over £25,000).
[edit] USA
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