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BUSINESS TIPS

Enterprise Finance Guarantee Scheme

In the current economic climate, businesses are finding it increasingly hard to access the finance they need; in particular working capital. In order to tackle this, the government announced the launch of the Enterprise Finance Guarantee Scheme (EFG) in November 2008, which replaced the previous Small Firms Loan Guarantee scheme. Under the EFG, the Government will guarantee lending to viable SME’s to ensure that they can get the working capital and investment that they need.

Whilst the EFG is designed primarily as a means of providing working capital to businesses, loans can also be provided for other purposes such as asset purchase, business expansion/acquisition or property/equipment purchase. Loans range in size from £1,000 to £1m and the timespan can range from three months to 10 years. You can choose to receive the loan in a lump sum, or break it up into regular chunks to suit your business strategy.

The scheme is open to businesses with an annual turnover of no more than £41m and almost all sectors are covered; the only sectors which aren’t eligible for EFG funding are coal, forestry, fisheries, transport and agriculture.

Like any loan application, an EFG loan requires you to fill out an application and provide a number of supporting documents including a business plan and financial projections. For professional assistance in writing your business plan please call one of our business plan consultants on 020 8429 9245 or send an e-mail to businessplans@wisteria.co.uk.