In recent years, lending to SMEs by traditional finance means has been relatively uncomplicated and as a result, the Government backed EFG lending scheme was down by 2.2% at the end of Q4 last year.
Yet, it was a very different story back in 2009, the UK was just creeping into a damaging recession, and so the EFG Scheme was seen as a ‘knight in shining armour’ for many SMEs when it first launched. The scheme saw SME businesses being able to apply for funding even if they didn’t have sufficient or appropriate security. This resulted in a huge boast to both SMEs and the UK economy.
Thus, over the last few years, SME businesses have been thriving; providing a true backbone to the UK economy.
The Fearful Loom of Brexit Just Weeks Away
The scheme could for many small businesses, come heroically galloping back into town as SMEs could yet again struggle to secure lending. Brexit could result in many traditional lending options tighten their reins on their lending criteria, and assets and securities against them.
Still today, the EFG Scheme provides funding to SME businesses that are not able to secure funding, due to lack of security, through a range of approved lenders. Calverton Finance is one such EFG approved lending provider, offering clients a choice of fixed term loans and top up facilities through our award winning products, along with our customer service philosophy and culture.
Here, our Managing Director, Mark Byrne, explains why SMEs should consider EFG funding, “If the UK comes crashing out of the EU SMEs could find themselves in an extremely precarious situation financially. Cashflow reserves could dry up as a result of customers only making essential purchases, customers could pay even later than usual in a bid to keep their own cashflow running, banks could very well make lending hard to achieve. It’s therefore critical to preserve the growth SMEs have achieved in the last few years by utilising the readily available funding options via the EFG Scheme.”
“What the UK’s SME business community cannot afford to do is risk undoing all their hard work and so they should look towards the scheme for funding should they be refused elsewhere.”
Backed by the British Business Bank
The scheme boasts the highest accreditations, with only fully approved and accredited providers on-board, such as Calverton Finance. The scheme’s there to be utilised, there for businesses such as yours to take full advantage of.
Mark continues, “Left unused, the UK economy could take even longer to return to stability should the financial markets take a serious hit after 29th March. The EFG Scheme that has already supported your SME peers with over £2 billion worth of funding in just 10 years; is proof, if needed, that the scheme is there for the benefit of small and medium sized businesses just like yours.”
You can check your eligibility right now through our online EFG Form, or you can call our specialist team on 01908 268888.