Small Companies Loan Guarantee Scheme

Small Companies Loan Guarantee Scheme

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I've always been told that take up of this scheme is really low because it's cheaper and easier to get a second mortgage on the family home .

However, I'd assumed with the recent property crash that this wasn't true anymore and that banks and accountants would be seeing more applications for the scheme.

Recently, I've been talking to a couple of local business bank managers who say they haven't had any training on the scheme and haven't seen any applications yet .

I don't think that this was just a tactful way of discouraging this particular client as they seem to be very keen to take it on.

Is this just a local blip or are other accountants experiencing this problem ?

I don't often raise my head above the in tray but if the scheme supposed to be a central plank of government help for small business and managers haven't had training to implement it , this does seem to be a problem.

Perplexed Reader

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By User deleted
10th Mar 2009 13:02

Enterprise Finance Guarantee Scheme
EFGS replaced SFLG some months ago.

The banks appear to each take a different approach to its use, but its fair to say it is hardly widespread.

The overriding consideration for the banks is that the lending proposal must be viable - one which they would ordinarily lend to with adequate security in place. If it passes that test and they cannot find security in the company, then they should be pushing the EFGS.

I am yet to see lending secured in this way.

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