What is the Enterprise Finance Guarantee?
The Enterprise Finance Guarantee (EFG) is an innovative business finance scheme, which can help you access the additional funding you need to achieve your ambitions. Supported by the Government through the British Business Bank, the guarantee enables lenders to help established companies grow.
Working alongside our Receivables Finance solution, you could raise up to £1.2 million to turn those possibilities into reality.
Make great things happen with the EFG - what would you do with yours?
If you’re a business to business operation in the UK with an annual turnover of no more than £41 million, the EFG could help you turn your business ambitions into a reality. Whether it’s an acquisition, funding that unexpected order, giving your working capital a boost to smooth out seasonal fluctuations or taking rapid growth in your stride, the EFG could be the answer you’ve been looking for.
Have a look here to see what other businesses have done with their EFG and click here for our in depth case studies.
How it works
The EFG was created to help businesses with a viable business plan but insufficient security to raise the finance they need. It does this by providing the lender with a government-backed guarantee of 75% of the loan value in event of default by the borrower. In essence it may help turn a "no" credit decision into a "yes". The borrower is required to pay a 2% fee as a contribution towards the cost of the guarantee.
It’s important to be aware that borrowers under the EFG scheme remain liable for 100% of the outstanding debt at all times.
2 Ways to make great things happen
At ABN AMRO Commercial Finance we can provide the Enterprise Finance Guarantee alongside our Receivables Finance solutions, improving your working capital at the same time.
If you’re planning an acquisition or a big expansion and need a significant amount of funding upfront this maybe the solution for you.
If you need an ongoing boost to your working capital this option could top up your Receivables Finance advance (up to 100%).
Alternatively, you may wish to take a mixture of Fixed Term and Revolving for ultimate flexibility.
The benefits of the Enterprise Finance Guarantee:
- Guarantees up to £1.2 million funding
- Delivered alongside our Receivables Finance solutions, improving your cashflow at the same time
- Few restrictions on use – what will you do with yours?
- Minimal paperwork - ABN AMRO Commercial Finance handles all the details of the scheme to simplify the process for you
- Repayment terms range from 3 months to 10 years
- Fast access to finance - we can provide funds in days rather than weeks
- Retain control - Utilise your invoices to maximise finance as an alternative to equity finance.
The provision of the EFG should not be construed as an endorsement or warranty of ABN AMRO Commercial Finance by the UK government, including the Secretary of State for Business, Energy & Industrial Strategy (BEIS).