Fashionizer
BESPOKE UNIFORM MANUFACTURER
England
"Debbie Leon from Fashionizer has won awards for her unique uniform designs. She has taken 3 business loans from Funding Circle to grow and develop."
We now offer growth guarantee scheme (GGS) loans
Loans under the new Government-backed scheme are now available alongside our business loans. Apply today and we’ll find the right product for you on the best possible terms.
Apply as a limited company without affecting your credit score
Apply online in 7 minutes
Decision in as little as 1 hour
Borrow £10,000 to £750,000
Rates from 6.9% per year
Funding Circle has worked with the British Business Bank since 2013, supporting thousands of businesses as one of the largest providers of Government-backed loans including through the Growth Guarantee Scheme.
What is a government-backed business loan?
Government-backed business loans work very much like commercial business loans offered by banks and other lenders, with the exception that they are funded or guaranteed by the UK Government. This type of finance makes essential funding available to new and existing businesses owners.
Do government-backed loans differ from government grants?
Government-backed business loans shouldn't be confused with government grants. The main difference is that loans are repayable, whereas grants are not. While applying for a business grant rather than a loan may seem like the obvious choice for this reason, keep in mind that government grants are limited and fewer applications are accepted.
What can government-backed business loans be used for?
Government-backed business loans help small UK businesses gain the finance they need to grow and succeed. Your business loan can be used for almost any legitimate business purpose, providing it supports trading activity in the UK.
Government-backed business loans can help to
- Buying equipment
- Paying staff wages
- Marketing campaigns
- Purchasing stock
- Covering revenue gaps
- Managing uncertainty
We’ve helped over 103,000 UK businesses borrow £13.6 billion to take their business further.
£13.6 billion
Lent to UK businesses
Applying is quick and easy
1
Check if you qualify in 30 seconds
See if you’re eligible without affecting your credit score
2
Apply online in 7 minutes
Complete our simple form with your details, and we’ll only ask for supporting documents if we need them
3
Get approved in as little as 1 hour
If approved, you’ll receive no-obligation offer with your personalised rate
4
Get your funds in a couple of days
Once you accept your offer we'll deposit the money into your account - typically within 48 hours
Here to help if you need us
Contact our UK-based team if you have any questions
How do government-backed business loans work?
Government-backed business loans (such as the Growth Guarantee Scheme or the now closed Recovery Loan Scheme) are issued by British Business Bank-accredited lenders and come with a guarantee by the government. This means that, if the borrower is unable to repay the loan in full, the UK Government promises to pay a percentage of the loan back to the lender.
It’s important to note that, despite the guarantee, when taking such a loan the borrower is liable for the total cost of the loan. The guarantee only kicks in if the business is unable to pay the debt, for example because it has ceased trading.
Why apply for a government-backed loan?
Government-backed loans are advantageous in that the risk to the lender is reduced, therefore they can approve more applications. Depending on the loan scheme, it may also come with features or benefits that you don’t normally see with other loan products.
Types of government-backed loan
The UK Government has offered several different types of business loan over recent years, including:
- Low interest loans
- Government-guaranteed loans (eg. the Growth Guarantee Scheme)
Finance under the Growth Guarantee Scheme is currently available in the form of term loans, overdrafts, invoice financing and asset financing.
Some government-backed funding programs run indefinitely while others, such as the coronavirus loan schemes, are open for a fixed period.
Bobbin Bicycles
BICYCLE COMPANY
London
"It felt like a breath of fresh air...what could have taken a long amount of time, took such a short amount of time."
Do I qualify for a government-backed loan via the Growth Guarantee Scheme (GGS)?
To receive a loan from Funding Circle under the Government’s Growth Guarantee Scheme (GGS), you’ll need to meet the following criteria:
- Business has a turnover of less than £45 million
- Business is trading in the UK
- Minimum of 2 years’ trading history
- Loan is for business purposes (i.e. working capital or investment, and to support trading in the UK)
To help as many businesses as possible, we’ll look at a business' performance over a longer period of time to ascertain whether it has a viable business proposition regardless of the impact of Covid-19.
Businesses within most sectors can apply for a government-backed GGS loan. However, the following organisations are not eligible:
- Banks, building societies, insurers and reinsurers (but not insurance brokers)
- Public-sector bodies
- State-funded primary and secondary schools
When you apply for any business loan through Funding Circle, we’ll always offer you a loan on the best possible terms. This means that if we can offer you a loan with better rates, without using the Growth Guarantee Scheme, we will.
Keep in mind that a government loan might not be the best option for your business. Better terms may be available on other products and finance under the Growth Guarantee Scheme is capped at 25% of your annual turnover.
A Funding Circle, we’re committed to helping small businesses thrive. We will always offer you the best business loan we can, even if it isn’t government-backed GGS loan.
Having a bad credit score may limit the finance options available to you and will affect the interest rate you are offered. However, you may still qualify for a business loan under the Growth Guarantee Scheme even with a poor credit score, and even if you have been refused credit in the past.
Applications to the scheme are considered on a case-by-case basis and the final decision will be based a variety of factors – not just your business credit rating.
This depends on the lender issuing the loan, and how much you intend to borrow. According to the rules of the Growth Guarantee Scheme, lenders may not ask for a personal guarantee on loans of £250,000 or less. A personal guarantee may be required for loans above this amount, but this is down to the discretion of the lender themselves.
Giving a personal guarantee means that should your business fail, you will take on personal responsibility for any amount outstanding on the loan.
Unfortunately, the government’s Growth Guarantee Scheme does not cover businesses with under two years’ trading history, or people looking for funding to start a new business. However, there are other options available if you fall into this category and are considering taking out a business loan.
The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme.
Check your eligibility in 30 seconds with our online form without affecting your credit score.
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