The Enterprise Finance Guarantee (EFG) is a loan guarantee scheme intended to facilitate additional bank lending to viable SMEs lacking adequate security for a normal commercial loan. EFG provides a Government backed guarantee for 75% of loan value to viable businesses with a turnover of up to £41m and seeking loans of between £1000 and £1m. The borrower pays a 2% annual premium. Under EFG, the following facilities can be guaranteed, repayable over a period of between three months and ten years until otherwise indicated.
- New term loans (unsecured and partially secured) for working capital or investment purposes.
- Refinancing of existing term loans, where the loan is at risk due to deteriorating value of security or where for cash flow reasons the borrower is struggling to meet existing loan repayments.
- Conversion of part of all of an existing utilised overdraft onto a term loan in order to release capacity in the overdraft to meet working capital requirements.
- Invoice Finance Guarantee providing a guarantee on invoice finance facilities to support an agreed additional advance on an SME’s debtor book, to supplement the invoice finance facility on commercial terms already in place. (This is available for terms up to three years).
- Overdraft Guarantee providing a guarantee on new or increased overdraft borrowing where the SME is viable but has inadequate security to meet a lender’s normal requirements for the level of overdraft requested. (This is available for terms up to two years).
For further information on the Enterprise Finance Guarantee or any of our other product or services, please complete the Get A Quote, Contact Form or email email@example.com. Alternatively simply telephone our national rate number 0845 601 5343 or contact your local Harrisons office, details of which can be found within the Contact Us section.