Compass Business Finance has become an accredited lender under the British Business Bank’s Enterprise Finance Guarantee (EFG) programme. EFG accreditation will enable Compass to increase its supply of asset finance to smaller businesses, primarily in the print, packaging and engineering sectors.
The EFG programme provides lenders with a Government-backed guarantee for up to 75% of the outstanding balance of eligible facilities, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. It supports facilities of between £1,000 and £1.2m to smaller businesses that are viable but unable to obtain finance from their lender due to having inadequate security to meet the lender’s normal credit requirements.
Bernie Skivington, Director, Guarantee and Wholesale Solutions at British Business Bank said: “The British Business Bank is committed to helping smaller UK businesses access the finance they need to realise their potential.
“Accrediting Compass under the EFG programme will enable them to support more smaller businesses that are working successfully, but which might otherwise struggle toacquire business critical equipment or machinery that can boost their growth.
Mark Nelson, Director of Compass Business Finance, said: “When EFG extended to asset finance, we saw an opportunity to use the programme to increase our provision to businesses in the print, packaging and engineering sectors. Through the accreditation, we’re now able to further extend our range of competitive and flexible solutions to those industries.”
Since its launch in 2009, the Enterprise Finance Guarantee has supported smaller businesses with the provision of over 29,950 loans and other facilities totalling more than £3.2bn.