Access the Small Firms Loan Guarantee Scheme

through Agora Commercial Finance Ltd

Need a little help with your business?  A little known fund may be just the thing.  The Small Firms Loan Guarantee Scheme has been in existence for many years but very few businesses are even aware of it.  The scheme - a joint venture between the Department of Trade and Industry and the banks - helps small businesses with a viable business plan, but lacking security, to borrow money from approved lenders.

Loans are available from £5,000 to £250,000 for businesses up to 5 years old with repayment terms of up to 10 years.

The DTI does not lend the money but provides a guarantee for 75% of the scheme loan upon acceptance of the application in exchange for payment of a 2% annual premium.  The actual decision to lend rests with the banks.

To qualify for the scheme borrowers must be running or intending to run an eligible business.  The loan must be for an eligible purpose and any available personal assets must first be pledged in support of the project.

This might seem daunting at first, but some relaxed rules mean that most businesses with annual turnover below £5.6m will qualify.

All the main banks participate in the scheme although some recommend its use more than others.  The borrower must convince the lender that the proposed project is viable with a carefully prepared business plan.

Borrowers may, however, prefer to employ a specialist to assist with their business plan and to handle discussions and negotiations with the banks.  Agora Commercial Finance Ltd is one such specialist and welcomes enquiries regarding scheme eligibility and handles scheme applications on behalf of all local businesses.

For more details and a free initial consultation call Andy Jones on 01752 405032 or email info@motyourbank.com using our online enquiry form for a prompt reply.