Want to increase cash flow in your business? Looking for financial support to grow or flourish your small business? Then go through this article to discover an amazing scheme.
Sometimes small businesses and startups find fiendishly difficult to get necessary financial aid for running their business. There are very fat chances of getting loan from banks. However, UK government has cropped up with a silver bullet for the early stage small businesses. The long-standing financial problems faced by these companies will get solved by the Enterprise Finance Guarantee Scheme (EFG).
EFG is intended to fuel the development of small companies and startups which otherwise is sluggish due to lack of funding. If the lender is convinced that your organization is capable of repaying the loan, the slow-moving business will turn powerful with the government-backed scheme.
Eligibility criteria for EFG scheme:
Whether your business is budding or long-established, EFG scheme is open for everyone. But there are some businesses and eligibility concerns related with this scheme.
Which businesses are not eligible for the scheme?
According to the sources, most of the organizations can apply for the scheme, however there are some business lines which are not eligible for the EFG scheme. Industries such as agriculture, medical, education, forestry, shipping, fishing and coal and steel cannot avail financial assistance from EFG scheme.
Scheme is available for:
EFG scheme is open to for businesses that:
- Any age business can apply for loan
- Function/operate in UK
- Companies whose annual turnover is not more than 41 million pounds. In March 2012, the ceiling has increased to annual turnover of 25 million pounds
- Businesses who are looking for fund from 1,000 pounds to 1.2 million pound
- Companies which are liable to repay the loan within 3 months to 10 years
How to apply for the loan under EFG scheme?
For getting benefited with EFG scheme, the applicant will have to fill an application which will be similar to any loan application. Along with the application the business which applies for loan has to submit essential documents like business plan, financial estimation and management accounts.
Lenders who offer EFG Scheme:
From major high street banks to smaller professional institutions, there are around 40 lenders who are ready to lend support to businesses under EFG scheme. HSBC, Lloyds TSB, Skipton Business Finance, State Securities, Barclays, Business Finance Solutions are some of the reputed lenders.
Skipton Business Finance:
UK government has selected Skipton Business Finance as one of the reputed lenders of Enterprise Finance Guarantee. Skipton offers flexible invoice finance solutions to UK businesses which include invoice factoring and invoice discounting.
Skipton Business Finance Company provides financial assistance to businesses with revenue of up to 25 million pounds. 75% of the loan offered is guaranteed by the UK government.
Getting support through EFG scheme can make a big difference to the growing companies. However if you fail to get the loan under EFG scheme, don’t worry as there are wide range of financial options available that will help the ambitious companies to grow.
