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NEWSLETTER
Febraury 2009:
Enterprise Finance Guarantee (EFG) for owner managed businesses
Raising finance for businesses is what we do but the new Enterprise Finance Guarantee(EFG) which replaces the previous Small Firms Loan Guarantee (SFLG) is not easy to obtain, despite the government’s claims to the contrary. The responsible department is the Business Enterprise and Regulatory Reform (BERR), a title that gives you a good indication of their likely affinity with business owners struggling with declining sales and margins!
The take up of the SFLG dropped by some 60% over the last 3 years because of the red tape and bureaucracy involved in applying for the loan, coupled to the high failure rate of the few companies that did obtain a loan.
So it’s no surprise to see a recent survey announcing that only 8% of bank managers are interested in supporting the new EFG loan!
To help our customers we employ a Government loan specialist who achieved a 95% success rate with the SFLG, compared to the banks’ results of just 10%.
The EFG process is not quick - allow at least 10 weeks - but we will save you a lot of hassle and can tell you quickly whether or not your business is likely to qualify.
Please e-mail me if you want to discuss the EFG or any other kind of borrowing.