Securing the right financial support for your business is crucial for growth and sustainability. For UK businesses, the Growth Guarantee Scheme (formerly known as the Recovery Loan Scheme) provides a funding solution for smaller businesses seeking to invest and grow.
What is the Growth Guarantee Scheme?
Launched on 1 July 2024, the Growth Guarantee Scheme supports smaller UK businesses in accessing finance to invest and expand. Accredited lenders offer various financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending.
Under the scheme, businesses can access up to £2m, with a 70% government-backed guarantee for lenders. The funds can be used for any legitimate business purpose, such as cash flow management or investment, provided the business can afford the additional debt finance.
Key Features of the Growth Guarantee Scheme:
- Up to £2m per business: Borrowers outside the Northern Ireland Protocol can access up to £2m, while those within the Protocol are limited to £1m. The minimum facility amounts are £1,000 for asset finance, invoice finance, and asset-based lending, and £25,001 for term loans and overdrafts.
- Range of products: The scheme supports term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Availability depends on the lender.
- Term length: Term loans and asset finance are available for 3 months to 6 years; overdrafts, invoice finance, and asset-based lending are available for 3 months to 3 years.
- Access to other schemes: Borrowers with prior CBILS, CLBILS, BBLS, or RLS loans can still access the Growth Guarantee Scheme, although this may reduce the amount they are eligible to borrow.
- Pricing: Interest rates and fees vary by lender, reflecting the government guarantee.
- Personal guarantees: Lenders may request personal guarantees, but homes cannot be used as security.
- Lender guarantee: Lenders receive a 70% government-backed guarantee, but the borrower remains fully liable for the debt.
- Lender discretion: Loan decisions are made by lenders, who conduct their own credit and fraud checks.
- Subsidy limits: The Growth Guarantee Scheme is considered a subsidy, and total subsidies over three years may limit the amount a business can borrow.
How Match Finance Can Help
At Match Finance, we offer a range of products and services designed specifically for SMEs, helping you navigate the sometimes complex process of securing business finance.
Our services include:
- Tailored Financial Solutions: We understand that each business is unique. Our team works closely with you to create a financial solution that aligns with your growth objectives.
- Expert Guidance: Navigating business finance can be daunting. Our experts guide you through every step, ensuring you make informed decisions that benefit your business in the long term.
- Streamlined Application Process: We’ve simplified the loan application process, making it as straightforward as possible. From initial consultation to final approval, we’re with you every step of the way.
- Competitive Rates: Leveraging the Growth Guarantee Scheme, we can offer competitive interest rates, making it easier for you to invest in your business’s future.
Types of Finance We Offer
Match Finance provides a variety of financial solutions to meet the diverse needs of businesses:
- Business Loans: Flexible secured and unsecured loan options to support your business growth.
- Asset Finance: Funding for purchasing or leasing equipment and machinery.
- Invoice Finance: Improve cash flow by borrowing against unpaid invoices.
- Trade Finance: Support for businesses involved in international trade.
Why Choose Match Finance?
With over 10 years of experience, Match Finance specialises in sourcing tailored funding solutions for UK businesses. Our whole-of-market panel ensures access to the best financial options available.
We work with a broad range of lenders, offering bespoke solutions to meet your specific needs. At Match Finance, we prioritise speed, efficiency, and dedicated support throughout the application process and beyond. As your one-stop shop for business finance, we’re committed to helping your business grow. With a focus on SMEs, we understand the challenges of securing finance and work closely with lenders to support your success.
Get Started Today
If you’re ready to take your business to the next level, contact us today to find out how we can help you leverage the Growth Guarantee Scheme. Together, we can unlock your business’s full potential.
For more information about the Growth Guarantee Scheme, visit the British Business Bank’s official page here.
