Enterprise Finance Guarantee Scheme

[dazfree]

Hi,

I'm thinking of applying for a bank loan to help grow the business.

I've been looking around and seen the Enterprise Finance Guarantee Scheme which looks like we may qualify for as 75% of the guarantee is covered by the government.

Lets say I apply for a loan of £30k and are accepted then the government will cover £22.5k of the loan and I have to cover the other £7.5k of the loan.

For me to cover £7.5k of the loan will the bank ask for a personal guarantee for example I would have to provide my house as security or can I provide the security in cash?

Anybody with any experience of getting a loan through this scheme?

Cheers,

D

 

[bovine]

Be wary, there have been threads on here about this sort of thing. You will be guaranteeing he whole amount, the guarantee is not for you but for the bank.

I forget the ins and outs, but just be aware that its not quite as simple as it seems!

 

[dazfree]

Be wary, there have been threads on here about this sort of thing. You will be guaranteeing he whole amount, the guarantee is not for you but for the bank.

I understand the guarantee is for the bank, just makes it easier as I only have to provide 25% of the amount as a guarantee.

 

[Billmccallum]

I understand the guarantee is for the bank, just makes it easier as I only have to provide 25% of the amount as a guarantee.

The bank will chase all parties to the loan, only when these avenues have been exhausted will they be able to call on the EFGS.

 

[businessfunding]

You will guarantee the full amount however it will be an 'open' guarantee as the bank cannot take a charge on your house (main residential property) under the scheme.

http://fundingportal.blogspot.co.uk/2011/08/efg-loans-who-has-been-conned.html