Business Finance Backed by Government Support
Government-Backed Loans: Growth Guarantee Scheme
At First Oak Capital, we know accessing the right funding can be challenging. That’s why we’re here to help you leverage the Growth Guarantee Scheme, a government-backed initiative designed to make business financing more accessible.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) supports UK businesses by providing loans with reduced lender risk. As an extension of the Recovery Loan Scheme (RLS), which ended in June 2024, it allows businesses to secure funding even when traditional lending options are limited.
Whether you’re investing in equipment, expanding operations, or boosting working capital, the Growth Guarantee Scheme offers the financial support you need to grow and thrive.
Key Benefits of the Growth Guarantee Scheme
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- Government Backing: A partial government guarantee makes lenders more likely to approve loans, even for businesses with limited credit history.
- Larger Loans: Access bigger loan amounts to give your business the boost it needs.
- Flexible Terms: Repayment terms are designed to ease cash flow pressures.
Who is Eligible for the Growth Guarantee Scheme?
The GGS is available to businesses of all sizes and across various sectors in the UK. However, eligibility typically depends on factors such as:
- Size of the business: The scheme is particularly beneficial for small to medium-sized enterprises (SMEs), although larger businesses may also qualify.
- Growth potential: Your business should have clear plans for growth, such as new projects, product lines, or expansion efforts.
- Financial health: While the scheme is designed to assist businesses that may not have perfect credit, lenders will still look at your business’s overall financial health and ability to repay the loan.
At First Oak Capital, we can help assess whether your business is eligible for the GGS and assist with the application process to make sure you get the funding you need.
FAQs
The scheme provides lenders with an 80% government guarantee on the loan. This reduces the risk for lenders, making it easier for businesses to secure funding. Importantly, you remain 100% responsible for repaying the loan.
Businesses can typically apply for loans ranging from £25,000 up to £2 million, depending on their needs and circumstances. The exact amount will depend on your business profile and lender assessment.
The GGS can support various types of finance, including:
- Term loans
- Asset finance
- Invoice finance
- Revolving credit facilities (such as overdrafts)
Funds accessed through the scheme can be used for a variety of purposes, including:
- Investing in equipment or technology
- Expanding premises or operations
- Managing cash flow
- Hiring and training staff
- Supporting growth or recovery plans
Loan terms under the Growth Guarantee Scheme can vary, but typically range from 3 months up to 6 years, depending on the type of finance and lender.
Simply contact First Oak Capital to discuss your requirements and current situation and leave the rest to us.
Have Questions? Let’s Talk.
For further information regarding the Growth Guarantee Scheme backed loans or if you have specific questions regarding your circumstances, please give our friendly team a call. We’re open Monday – Friday, 9.00-5pm. Or if you’re ready to get started, click the button below.
