The Enterprise Finance Guarantee (EFG) is a Government loan guarantee scheme to enable lending to small and medium sized enterprises (SMEs) which can demonstrate that they have sufficient cash-flow to meet lenders loan affordability requirements, but are lacking adequate security to obtain a commercial bank loan.

EFG is principally used to support loans of between £1,000 and £1 million, and repayment terms between three months and 10 years. EFG also supports overdrafts and invoice finance facilities, which have shorter repayment terms of two years and three years respectively.

A business will always apply for a commercial loan before EFG is considered. If a business meets the lenders’ loan affordability requirements, and would have been offered a traditional bank business loan if they had adequate security, then EFG is worth considering. Businesses should ask about EFG during their loan application.

For further details and information about how to apply see this link

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