At Cutts and Co Accountancy, we are dedicated to helping small businesses thrive. We are excited to share news about the recently launched Growth Guarantee Scheme by the British Business Bank. This new initiative is set to support approximately 11,000 UK small businesses over the next two years, providing vital access to finance that will enable growth and innovation.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme, a successor to the Recovery Loan Scheme, aims to enhance the financial options available to smaller businesses in the UK. This scheme is designed to improve financing terms, making it easier for small businesses to secure the necessary funds for expansion, diversification, and other strategic initiatives.
Key Features of the Scheme
1. Broad Range of Financial Products
The Growth Guarantee Scheme offers a variety of financial products, including:
- Loans
- Overdrafts
- Invoice Financing
- Asset Finance
With around 40 accredited lenders participating, and 20 of these lenders already open for applications, businesses have a diverse array of options to choose from. The remaining lenders are expected to open their applications in the coming weeks.
2. Government-Backed Guarantee
One of the standout features of this scheme is the 70% government-backed guarantee. This guarantee not only reduces the risk for lenders but also potentially offers more favourable interest rates and fees for borrowers. This can make finance more accessible and affordable for small businesses, providing a crucial lifeline for growth and development.
Benefits for Small Businesses
The Growth Guarantee Scheme is poised to offer several significant benefits to small businesses across the UK:
Improved Access to Finance
Securing external finance can often be a challenge for small businesses. The Growth Guarantee Scheme helps bridge this gap, ensuring that more businesses can access the funds they need to grow and succeed.
Better Financing Terms
With the backing of a government guarantee, the scheme is designed to offer better terms for small businesses. This includes more competitive interest rates and lower fees, making borrowing more attractive and manageable.
Support for Sustainable Growth
By facilitating access to finance, the Growth Guarantee Scheme supports sustainable growth for small businesses. Whether it’s scaling up operations, investing in new technologies, or expanding into new markets, this scheme provides the financial backing needed to turn these ambitions into reality.
Expert Insights
Reinald de Monchy, Managing Director of Guarantee and Wholesale Solutions at the British Business Bank, highlighted the positive impact of the scheme, stating, “The Growth Guarantee Scheme will allow lenders to offer more finance to their customers, generating more sustainable growth across the UK and providing a springboard for many smaller businesses to scale up or stay ahead.”
How Cutts and Co Accountancy Can Help
At Cutts and Co Accountancy, we understand the importance of securing the right financial support for your business. Our team of experts is here to guide you through the application process for the Growth Guarantee Scheme, helping you find the best financial products to meet your needs.
The Growth Guarantee Scheme represents a significant opportunity for small businesses across the UK. By improving access to finance and offering better terms, this scheme can help businesses achieve their growth ambitions. At Cutts and Co Accountancy, we are committed to supporting you every step of the way. Contact us today to learn more about how we can assist you in leveraging this new scheme to propel your business forward.
For personalised advice and further information, visit our website or schedule a consultation with our expert team. Let Cutts and Co Accountancy be your partner in driving business success.
