Enterprise Finance Guarantee,
The Enterprise Finance Guarantee, EFG, Funding replaces the Small Firms Loan Guarantee scheme as from January 2009.
What does it mean?
There are a number of banks which offer this new scheme however not all banks are the same. Unfortunately as with any bank lending the availability of a government guarantee scheme does not guarantee finance from any lending institution. The banks will only want to do a deal if it meets their own stringent lending criteria. Only when the customer ticks all the right boxes and there is a lack of traditional security, will a customer be eligible for support under the EFG.
When will funding not be available?
If the business or the directors have other security available then it is possible Enterprise Finance Guarantee, EFG, funding will NOT be available.
Also the facility is not available for a distress lend facility and the customer is expected to have made a 30% contribution in the overall cost of the total project.
Therefore other finance products might be more appropriate. Invoice discounting or factoring provides traditional cash flow facilities. Payroll finance also provides an alternative funding product.
What can we do?
XL Business Finance can do a free assessment as to your eligibility for such funding. It will provide the same support as before and much more.
What are the key features?
- Loans of £1,000 to £1,000,0000
- Loans available up to 10 years
- Loans can be used for many purposes
- Businesses previously declined by the SFLG can apply
- Businesses previously ineligible for the SFLG can apply
- Businesses unable to obtain traditional asset finance, overdraft invoice discounting or payroll finance can apply
Customers will be expected to provide a certain amount of information including a basic plan and forecast to check their eligibility for Enterprise Finance Guarantee, EFG, Funding . XL Business Finance can help you with this process and need not be a time consuming and costly process.
Max turnover of business or group of companies not to exceed £25,000,000
Support is available to almost all business sectors.
Call XL Business Finance for a free assessment. 0161 980 0577