Small Firms Loans Guarantee Explained

Start-up business finance is an essential aspect for allHSBC Bank plco Lloyds TSB Group plco National
new businesses. There are many different avenuesWestminster Bank plco Northern Bank (NI only)o
that you can approach to obtain this start-up financeNorthern Enterprise Ltdo One London Ltdo State
such as lenders, investors, credit cards, friends andSecurities plco Triodos Banko The Co-operative Bank
family as well as overdrafts; out of all of theseplco The Enterprise Fundo The Royal Bank of
aspects the two most popular are investors, such asScotlando UK Steel Enterprise Ltdo Ulster Bank Ltd (NI
business angels or venture capitalists and lenders suchonly)o Venture Finance plco Yorkshire Bank plc
as bank loans; however if you are a small to mediumAs with most schemes that are in place there are
business then you may not be able to obtain amain features and criteria of The Small Firms Loan
conventional loan because you do not have assets toGuarantee, which are:o A guarantee to the lender
offer as security. The Small Firms Loan Guaranteecovering 75 % of the loan amount, for which the
(SFLG) helps to overcome this by providing lendersborrower pays a 2% premium on the outstanding
with a government guarantee against default in certainbalance of the loan, payable to Department for
circumstances.Business, Enterprise and Regulatory Reform (BERR)o
The Small Firms Loan Guarantee is a joint ventureThe ability to guarantee loans of up to £250,000
between the Department for Business, Enterprise andand with terms of up to ten yearso Availability to
Regulatory Reform (BERR) and a number ofqualifying UK businesses with an annual turnover of up
participating lenders. On the date this article wasto £5.6milliono Availability to businesses in most
written, the following scheme members were listed onsectors and for most business purposes, although
the web:o Airdrie Savings Banko Bank of Barodaothere are some restrictions
Bank of Ireland (NI only)o Bank of Scotland plcoThis scheme is a massive help to many growing and
Barclays Bank plco Bibby Financial Servicesosmall businesses but as with all schemes and help
Doncaster Business Advice Center (Donbac)osurrounding money it comes with warnings and
Clydesdale Bank plco Euro Sales Finance PLCo Firstwhichever of the lending banks you choose they will
Trust Bank (NI only)o General Asset Managementocarry out a credit check on you and your business.