EFG scheme to buy existing business

[nk400]

Does anyone know the likelihood of being able to buy an existing business with funding via the EFG scheme?

I want to purchase this business but don't have the personal funds to do so. Unfortunately it is 100% digital, but offers an excellent return for the asking price (would generate a return in less than 1yr).

I see that the EFG scheme does allow this, but don't know the likelihood of banks agreeing to it.

NB// I don't currently run a business, so it's not a strict 'acquisition'.

Any help really appreciated!

[The Master]

You are not what the EFG was intended for, but at the end of the day the scheme is intended to act as a catch all for the applicants own bank.

the follwing banks ae in the scheme, so if you currently bank within one of these institutions and have a relationship with their manager, go and talk to him/her and ask them to tick their boxes.

You may be a speculative investor, but at end of day you will be the borrower and hence the one to try and float the lenders boat. Technically you dont need to be an existing owner/manager to qualify as the criteria is a bit fluffy ( no matter what the intent was)


Airdrie Savings Bank
Allied Irish Bank
Bank of Baroda
Bank of Cyprus UK
Bank of Ireland (Northern Ireland)
Bank of Scotland
Barclays
Big Issue Invest
Bolton Business Ventures
Braveheart Investment Group
Business Enterprise Fund
Business Finance Solutions
Capitalise Business Support
Centric Commercial Finance
Close Brothers
Clydesdale Bank
The Co-operative Bank
Cumbria Asset Reinvestment Trust
Davenham Group
Donbac Finance
DSL Business Finance
East London Small Business Centre
First Trust Bank (Northern Ireland only)
Foundation East
GE Capital
GLE oneLondon
HSBC
IGF Invoice Finance
Lloyds TSB
Lloyds TSB Commercial Finance
NatWest
NEL Fund Managers
Northern Bank (Northern Ireland)
The Royal Bank of Scotland
Santander Corporate Banking
Skipton Business Finance
SME Invoice Finance
South West Investment Group
State Securities
Triodos Bank
UK Steel Enterprises
Ulster Bank (Northern Ireland)
Venture Finance
Whiteaway Laidlaw Bank
Yorkshire Bank

[jim_price]

Agree with the previous respondent, there is only way to find out and that is to speak with the banks. Lloyds seem to be writing some business at the moment with the EFG so I would give them a go - they have got lending targets to meet after all.

Their criteria are the same as if you were applying for any term loan. You need to make a strong business case, show that the debt can comfortably serviced from cash flow, and make some kind of commitment as the business owner. This could mean some funds invested or a personal guarantee.

[fundingportal]

With EFG, as with any other loan the banks will look at 2 things:

1. How are you going to meet repayments? (80%)
2. What is their fallback if you don't meet repayments? (20%)

The guarantee element isn't a 'gift' from the taxpayer, it is subject to lots of stipulations and caveats, hence the banks will first look to you for security.

Does the business, as it stands show repayment-ability? If not, why do you believe that you can generate sufficient income to repay (you should, of course, be asking these questions whether using a loan or not)

I have been told that RBS are an activve lender at the moment.