Small Firms Loan Guarantee

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As a small firm you may not have security to offer for a loan. The Small Firms Loan Guarantees are available to businesses that have a £3m to £5m turnover. If your business has not been able to grow because of your lack of security then a small firms loan guarantee (SFLG) may be what you require to move forward. SFLG is where the Department of Trade and Industry (DTI) will usually guarantees 75% of a loan from a bank or other organization. SFLG are run for periods of between two and ten years. You could borrow up to £100,000, possibly even more if your business has been trading for more than two years. Your business will have to pay the DTI a yearly premium for the guarantee, usually around 2% on the outstanding loan balance. Any assets you do have will have to be stated as security for you to qualify for the scheme.