Running a small business in the UK comes with its unique set of challenges, especially when it comes to securing finance for growth and development. The Growth Guarantee Scheme (GGS) offers an excellent opportunity for small businesses to access necessary funds with reduced risk.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is designed to support smaller UK businesses by providing access to various financial products, such as term loans, overdrafts, asset finance, invoice finance, and asset-based lending. It offers a government-backed guarantee of up to 70%, making it easier for businesses to secure loans.
Key Benefits of the GGS
- Flexible Financing Options: The scheme supports a wide range of products, allowing businesses to choose the most suitable financing option for their needs.
- Substantial Loan Amounts: Businesses can access up to £2 million, which can significantly boost growth potential.
- Improved Terms: Lenders are encouraged to offer better terms due to the government guarantee, making loans more affordable.
- Support for Multiple Needs: Whether you need to manage cash flow, invest in new equipment, or expand your operations, the GGS can provide the necessary support.
Who is Eligible?
To qualify for the Growth Guarantee Scheme, your business must meet the following criteria:
- UK-based: Your business must be trading in the UK.
- Turnover Limit: Your business must have a turnover of up to £45 million.
- Viability: Your business must be viable and not in financial difficulty.
- Subsidy Compliance: You must confirm that the GGS facility will not exceed the maximum amount of subsidy allowed.
Why Consider the GGS?
- Reduced Risk: The 70% government guarantee reduces the risk for lenders, making them more likely to approve your loan.
- Growth Opportunities: With access to significant funding, you can seize growth opportunities that would otherwise be out of reach.
- Versatility: The scheme’s flexibility means you can use the finance for a wide range of legitimate business purposes, from managing cash flow to investing in expansion.
The Growth Guarantee Scheme is a valuable tool for small businesses aiming to grow and thrive in today’s competitive market. If you are looking to secure finance, consider the GGS as a potential solution to support your business ambitions.
For more details on how to apply, visit our Growth Guarantee Page.
