Enterprise Finance
The Enterprise Finance Guarantee (EFG) scheme is one of the UK government’s flagship business loans measures. The scheme is designed to support lending to firms that would otherwise be turned down for finance because of insufficient security.
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Startup & SME business loans
Enterprise Finance - How does it work?
Enterprise Finance Guarantee loans get their name because the government guarantees to take on most of any losses that occur. This means that the lender is only exposed to part of the risk, and in theory will offer loans that they wouldn’t otherwise have agreed.
The lender will still have a due diligence process and won’t give loans out to anyone who asks - but what EFG loans aim to do is widen the criteria somewhat to help more businesses get finance.
Under the scheme, the lending decision rests solely with the finance provider, and the borrower pays interest and fees to the lender as normal, as well as paying a quarterly fee to the Government.
Although EFG loans can be more expensive than other business loans, they might make the difference between getting the finance and not.
Financial product information
Representative example*
7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rate
Rates from 2.75% APR
Repayment period
1 month to 30 years terms