Enterprise Finance Guarantee (EFG)

What is the Enterprise Finance Guarantee?

Announced in the 2008 Pre-Budget Report, the EFG supports up to £1.3bn of new bank lending to viable SMEs in need of a cash injection to boost their cash flow, and temporarily replaces the Small Firms’ Loan Guarantee (SFLG) until March 2011.

Under the scheme, businesses with a turnover of up to £25million can apply for loans between £1,000 and £1million to support new loans, refinance existing loans or to convert all or part of an existing overdraft into a loan that is repayable over a period of up to 10 years to meet the business’ working capital demands.

The EFG also provides a top-up guarantee on invoice finance facilities to support the advance that was agreed with the funder. You can read more about the benefits of invoice finance here...

What are the benefits of the Enterprise Finance Guarantee?

• Businesses in most sectors are eligible to apply for the EFG.
• Supplied through a funder, the government guarantees 75% of the loan to lower the risk to the funder, increasing the likelihood of lending.
• The EFG allows businesses to apply for a wider loan amount than its predecessor, the SFLG.
• It can be provided alongside other funding solutions such as an invoice finance facility.

Is the Enterprise Finance Guarantee right for my business?

It can be difficult to decide which funder to approach and it’s important to consider your wider funding requirements when applying for the EFG to maximise your chances of meeting criteria such as affordability of repayments.

With more than 13 years’ experience in the commercial finance market, Hilton-Baird has access to the right lenders on the market that are able to boost your business’ cash flow.

To find out more about the Enterprise Finance Guarantee, please call our team on 0800 9774833 or email info@hiltonbaird.co.uk.