Business
Loans
|
|
|
|
|
|
|
|
small firms loan guarantee scheme - ukIt is well known that you can raise a loan as long as you have the money to guarantee the loan. The UK government introduced a scheme to overcome this 'catch22' impasse by acting as guarantor for 75% of the proposed loan. The SFLG scheme, so shortened, is a joint venture between the Department of Trade and Industry and a number of approved lenders - banks and other financial institutions. The loans are provided by the approved lenders who make all the commercial decisions about borrowing. All applications should be made direct to one of the approved lenders. The cost of the guarantee is two per cent per year on the outstanding amount of the loan, payable to the Department of Trade and Industry. This is in addition to the interest on the loan from the approved lender. Applications may be made from UK limited companies, partnerships and sole traders but there are many restrictions as to the type of business and how the loan will be used. The scheme guarantees 75% of loans from £5k to £250k over 2 to 10 years with staged repayments and the possibility of repayment holidays - most useful over tricky cashflow periods. If you can match the requirements, this is a very good deal and 'cheap money'. More information may be found at the DTI web site and in their booklet (in Adobe .pdf format) Approved Lenders Allied
Irish Banks/First Trust Bank *Operates
the Small Loan Arrangement |
|
| |
|
|