What is the Enterprise Finance Guarantee Programme?

In November 2018, Compass Business Finance became an accredited lender under the British Business Bank’s Enterprise Finance Guarantee (EFG) programme.

EFG enables Compass to provide facilities to smaller businesses that previously would not have had sufficient security to access the finance they require.

The programme provides Compass with a Government-backed guarantee for up to 75% of the outstanding balance of eligible facilities, potentially changing what would previously have been a ‘no’ credit decision to a ‘yes’.

EFG facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to having insufficient security to meet the lender’s normal requirements.

Eligibility Criteria

  • Businesses must be UK based, with a turnover of no more than £41m and have a sound proposal, along with the ability to repay the loan.
  • EFG guarantees facilities to fund the future growth or expansion of a business from £1,000 to £1.2 million.
  • Finance terms are from three months up to 7 years for asset finance.
  • A limited number of further eligibility restrictions do apply.

How do I apply for an EFG-supported borrowing facility?

It’s simple to apply and should take no longer than a standard loan application. If you’re interested in EFG, please contact us directly on 01732 833477 or through your equipment supplier.

If we can offer finance on normal commercial terms without the need to make use of EFG, we will. However, if you have a sound borrowing proposal but either no or inadequate security, we can consider support via EFG.

Since its launch in 2009, the Enterprise Finance Guarantee has supported smaller businesses with the provision of over 30,000 loans and other facilities totalling more than £3.2bn.

Please note

  • As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by EFG.
  • The EFG guarantee is to the lender and not the small business.
  • All small businesses supported via EFG are required to pay an annual fee to the government, as a contribution towards the cost of the scheme.
  • This fee is payable on a quarterly basis and is collected by direct debit, directly from the small business’ bank account.

About the British Business Bank

EFG is managed by British Business Financial Services Limited on behalf of its sponsoring department, Department for Business, Energy and Industrial Strategy (BEIS).

The British Business Bank is a government-owned business development bank which aims to ensure that finance markets work effectively for smaller businesses, enabling them to grow, prosper and build UK economic activity.

Full details can be found on the British Business Bank’s website.