Do you need to provide a personal guarantee?

If your business has been turned down for a commercial loan due to a lack of tangible security then the Enterprise Finance Guarantee Scheme (or EFG) may well provide a solution for you.

Whilst the loans are guaranteed by the Department for Business Innovation and Skills, personal guarantees are often required alongside from the directors of the businesses borrowing the money.

Regardless of the percentage backed by the Government, the company and any guarantors to the loan are wholly responsible for repaying the full amount (not just the 25% unsecured by the Government) and standard recovery procedures will be followed by the lenders if loans repayments are not satisfied.

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