In the ever-evolving landscape of business finance, staying informed about new support initiatives is crucial for both growth and sustainability. One such initiative is the recently introduced Growth Guarantee Scheme, a successor to the Recovery Loan Scheme.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is designed to provide financial support to businesses recovering from economic impacts. Building on the framework of the Recovery Loan Scheme, this new initiative aims to facilitate access to finance for smaller businesses (turnover of up to £45m*), helping them to invest, grow, and thrive in a competitive market.
Key Features of the Growth Guarantee Scheme
1. Enhanced Access to Finance: The scheme offers government-backed loans, providing businesses with easier access to the funds they need. This reduces the risk for lenders and encourages them to support a broader range of businesses.
2. Flexible Loan Amounts: Businesses can apply for loans up to £2 million
3. Broad Eligibility: Unlike some previous schemes, the Growth Guarantee Scheme is accessible to businesses across various sectors, provided they meet the basic eligibility criteria.
4. Attractive Terms: The loans come with favourable terms, including competitive interest rates and flexible repayment schedules, allowing businesses to manage their cash flow more effectively.
5. Support for Recovery and Growth: The primary objective of the scheme is to support businesses in their recovery as they invest and grow. Whether it's investing in new technology, expanding operations, or hiring additional staff, the scheme is designed to facilitate sustainable growth.
How Your Bookkeeper Can Help
Bookkeepers play a pivotal role in guiding their clients through both financial challenges and opportunities.
Assist with Applications: The application process for financial schemes can be daunting. We can help with the preparation and submission of loan applications, helping our clients navigate the process smoothly and increase their chances of approval. Lenders are likely to ask for the following for this loan:
Management accounts
Business plan
Historic accounts
Details of assets
Details of previous subsidy awards
Financial Planning: We use our expertise to help our clients develop robust financial plans that incorporate the new funding. This can include budgeting, forecasting, and identifying the best ways to utilise the loans for maximum impact.
Compliance and Reporting: Ensuring our clients remain compliant with the terms of the loan and any associated reporting requirements. Helping them avoid penalties and maintain good standing with lenders.
Strategic Guidance: Beyond the mechanics of the loan, we offer strategic guidance on how best to invest the funds to drive growth
*Where part of a group, the £45m is for the whole group’s turnover
