Growth Guarantee Scheme
The Growth Guarantee scheme has just (1/7/2024) been released by the British Business Bank and is essentially the latest iteration of the successful Recovery Loan Scheme.
The Scheme is designed to support UK SME businesses to access the finance they need to invest & grow by providing accredited lenders with a 70% Government – Backed Guarantee. As with the RLS Scheme and it’s predecessor the CBILS (Coronavirus Business Interruption Scheme) this will give lenders greater confidence in lending and should see easier access to funding for eligible UK SME’s.
The scheme will support a wide range of lending products including Loans, Invoice Finance, Asset Finance and Asset based Lending and will support facilities up to £2m (£1m in Northern Ireland).
As with all lending, borrowers will need to demonstrate that they are able to afford any new debt and the scheme can be used for any legitimate business purpose.
Key features of the Growth Guarantee Scheme
- Up to £2m per business group – The maximum amount of a facility provided under the scheme is generally £2m per business group. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts;
- **Assessment**: The lender reviews your financial health, recovery plan, and the loan amount requested.
- Wide range of products – GGS supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities. Not all lenders will be able to offer all products
- Pricing – Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The lender’s pricing will take into account the benefit of the Government guarantee.
Personal Guarantees
Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
Would you like more information?
Key Eligability Criteria
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Turnover limit – The scheme is open to smaller businesses with a turnover of up to £45m
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UK-based – The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity
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Viability test – The lender must consider that the borrower has a viable business proposition
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Business in difficulty – The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings
Is this right for your business?
With a wide and varied range of funding solutions and lenders, it can be difficult to understand which is the best option for your business. At Aim Financial Solutions, we will help you to understand which funding options are the best solution for your business and we will help you to secure the most competitive terms with the best lender for your circumstances.
Ready to unlock your working capital? Contact us today to learn more about how The Growth Guarantee Scheme can benefit your business.
Benefits of Using a Non-Bank Specialist Provider
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Competitive Exchange Rates: Non-bank providers often offer more favourable exchange rates compared to traditional banks, reducing the cost of international transactions.
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Optimise your risk management strategy – work with experts who will support you to develop a tailored strategy
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Faster Transfers: Benefit from quicker processing times, ensuring your funds reach their destination promptly and improving your global cash flow management.
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Expertise and Support: Access specialised knowledge and dedicated customer support to navigate complex international transactions and mitigate risks.
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Wide Reach: Utilise a global network that allows you to send and receive payments in numerous currencies and countries.
Is this right for your business?
Our non-bank specialist provider solutions for commercial foreign exchange are designed to support your business’s international operations with ease. We offer competitive rates, fast approvals, and personalised service to ensure your global financial transactions are seamless. Partner with us to streamline your international payments and optimise your global cash flow.