How to get Small Firms Loan Guarantee?

Question

Hi,

Myself and a friend of mine are looking to open a cloth shop in a busy high street. My background is in IT and my partner has over 20 years experience in Apparels trade. I am trying to figure out what is the likely hood of getting a lender to lend us money secured by DTI (Small Firms Loan Guarantee scheme)? I am just gathering facts from people who might have had dealings in this area.

Will the bank automatically disregard us for a loan through DTI as we have positive equity in our houses? This is a start-up and first business for both of us.

If we were to get funding this way I understand funding through this only secures 75% of the loan so the banks still has to be willing to take a risk on the 25% of the loan. Will they look to protect there investment through company assets or equity in our houses?

Thanks

J Mann

john boyle · Accepted Answer

In message ,          writes The SFLGS will only be available if the lender is satisfied with the  proposal in every respect as though there was no SFLG and if all the  possible available security that could be taken by the bank is so used  and the ONLY thing stopping the bank lending is the lack of adequate  security. This means that a floating charge over the assets of the  company and guarantees backed by charges over property, if available,  must be used first. The mere existence of a SFLG does not mean a bank will automatically  lend.

How to get Small Firms Loan Guarantee?

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