FINANCE OPTIONS

^Growth Guarantee Scheme for Start-ups and Early-stage Businesses

Q: Is my start-up eligible for the Growth Guarantee Scheme?

Yes, start-ups are eligible if they operate in the UK, have a turnover under £45m, meet viability checks, and are not 'in difficulty.' Early-stage firms can also consider the Start Up Loans programme.

Q: What type of businesses are excluded from the Growth Guarantee Scheme?

Banks, building societies, insurers (not brokers), public sector bodies, and state-funded schools are excluded. Most trading UK SMEs, including start-ups, are eligible.

Q: What can Growth Guarantee Scheme funding be used for?

Funding can be used for any legitimate business purpose, such as managing cash flow, investing in growth, asset purchases, or acquisitions by UK SMEs.

Q: Are there sector-specific Growth Guarantee Schemes or Green GGS offers?

There are no sector-specific GGS offers, but a Green GGS trial exists for sustainable asset finance. Most UK sectors are eligible except for specific exclusions.

The Growth Guarantee Scheme is a UK government-backed program that helps start-ups and early-stage businesses get access to loans and finance to invest and grow. It offers lenders a 70% government guarantee on loans, making it easier for small businesses to borrow money for things like managing cash flow or investing in their future. Interested in growing your business? Learn how this scheme could help you get the funding you need!

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What are the ^benefits of Growth Guarantee Scheme for Start-ups and Early-stage Businesses?

The Growth Guarantee Scheme for Start-ups and Early-stage Businesses is designed to provide financial backing and risk mitigation for new ventures. By offering guarantees on loans or investments, this scheme facilitates access to necessary funding while reducing the financial burden on entrepreneurs. This support is crucial for fostering innovation and helping businesses scale their operations effectively, ultimately contributing to economic growth and job creation.

Financial risk reduction

Encourages innovation

Supports business scaling

SCALE YOUR BUSINESS TO NEW HEIGHTS

What are the different types of Growth Guarantee Scheme for Start-ups and Early-stage Businesses?

Government-backed Loan Guarantees

Schemes where the government guarantees a portion of loans provided to start-ups to encourage lending.

Government-backed Loan Guarantees

Government-backed loan guarantees reduce lender risk by assuring the government will cover a set percentage of losses if the start-up defaults, making it easier for new businesses to access finance they might not otherwise get.

Equity Support Schemes

Government or agency co-investment in start-ups, often matching private investment to boost capital.

Equity Support Schemes

Equity support schemes provide funding by matching private investor capital or directly investing government funds in start-ups. This increases total available funding and often also brings business support or mentorship.

Credit Enhancement Facilities

Initiatives that improve a start-up's credit profile to help them secure loans or funding.

Credit Enhancement Facilities

Credit enhancement facilities use tools like guarantees, insurance, or risk-sharing to make start-ups more attractive to lenders and investors, thus improving their chances of raising necessary capital for growth.

What is the Growth Guarantee Scheme for Start-ups and Early-stage Businesses?

Government-backed Loan Guarantee

The Growth Guarantee Scheme provides a 70% government-backed guarantee to lenders offering loans to start-ups and early-stage businesses. While this encourages lenders to support more companies, borrowers are still responsible for repaying the full amount.

Broad Access to Finance Options

The scheme allows eligible businesses to apply for various types of finance, like term loans, overdrafts, asset finance, and invoice finance, with borrowing limits usually from £1,000 up to £2 million. This makes it easier for growing businesses to find funding that fits their needs.

Inclusive but Clear Eligibility

To apply, businesses must be UK-based with a turnover below £45 million and meet basic credit checks. While start-ups can be eligible, very early-stage companies may need to look at alternatives like the Start Up Loans programme, as some lenders may require more trading history.