GGS
What is the Growth Guarantee Scheme (GGS)?
Securing the right commercial finance is a critical step for scaling operations, managing cash flow, or purchasing new assets. If your business has previously struggled to find favourable lending terms, the new Growth Guarantee Scheme (GGS) could provide the solution.
What is the Growth Guarantee Scheme?
Launched in July 2024, the Growth Guarantee Scheme serves as the official successor to the Recovery Loan Scheme (RLS). The initiative is designed specifically to support smaller UK businesses in accessing debt finance.
The core mechanism of the scheme is simple but highly effective. It provides participating lenders with a 70% government-backed guarantee against the outstanding balance of a facility. This safety net encourages lenders to approve applications they might otherwise decline due to perceived risk, or to offer improved lending terms.
It is crucial to note that the guarantee is provided solely to the lender. The borrower always remains 100% liable for repaying the debt.
How the GGS Benefits UK Businesses
The GGS is designed to be versatile, supporting a wide range of commercial objectives. Key benefits include:
Significant Capital Access
Eligible businesses can apply for facilities up to £2 million per business group (or up to £1 million for borrowers within the scope of the Northern Ireland Protocol).
Product Variety
The scheme supports multiple finance types, including term loans, overdrafts, asset finance, and invoice finance.
Flexible Repayment Terms
Term loans and asset finance facilities offer repayment periods ranging from three months up to six years. Overdrafts and invoice finance are available for up to three years.
Unrestricted Usage
You can use the funds for virtually any legitimate business purpose, whether that is investing in new equipment, hiring staff, or bolstering your working capital.
Are You Eligible for the GGS?
To qualify for funding under the scheme, your business must meet the following baseline criteria:
UK-Based Trading
You must be carrying out trading activity in the UK, generating more than 50% of your income from these activities.
Turnover Limits
Your business must have an annual turnover of up to £45 million (calculated on a group basis if applicable).
Viability
You must have a viable business proposition, which will be assessed by the lender during the application process.
Financial Standing
Your business cannot be in collective insolvency proceedings.
Secure Your Funding with Fundur
Navigating government-backed finance schemes can be time-consuming. Fundur alleviates funding barriers utilising our seamless application technology to align your specific business to the most suited lender from our 300+ lender network within 30 seconds. This ensures you are achieving the best rate possible without the traditional administrative hassle.
We firmly believe in the importance of building relationships. We offer free consultations to understand your exact requirements and assess the funding options available to you, supporting your business even when usual high street banks have failed to do so.
Ready to explore your GGS options? Our expert team is on hand to guide you through the process.
Frequently asked questions about the GGS.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is a UK government-backed initiative launched in July 2024. It provides lenders with a 70% guarantee to help smaller UK businesses access commercial finance, though the borrower remains 100% liable for the debt.
How much can I borrow under the GGS?
Eligible UK businesses can borrow up to £2 million per business group, or up to £1 million if operating within the scope of the Northern Ireland Protocol.