Loans for Business and the EFG

The Enterprise guarantee scheme from a taxpayer’s and the government’s perspective has been an unmitigated expensive disaster. The government entrusted the scheme with the countries bankers only to find that default rates within the scheme are completely unacceptable and unrealistic. It is thought that without the scheme banks would have been rather more careful with their lending to small businesses.
One in every five loans for businesses are made to small companies and underwritten by the taxpayer under a £2.3 billion government credit scheme has ended in default. The government figures show that 20.2 per cent of enterprise finance guarantee (EFG) loans have ended in default. It is suspected that banks knowing that the government were under writing the debts did not do enough due diligence to avoid such a high default level. The scheme is currently causing an internal investigation at Royal Bank of Scotland due to the high defaults.
The default rate is some 15 per cent higher than banks would normally expect, leading to speculation of severe abuse of the scheme and banks passing on all the risk in small business commercial lending to the taxpayer.
With such a disaster on the government’s hands these types of schemes must surely be at an end, which will put further pressure on businesses to find funds. Whilst the credit crunch is largely thought to be over and the stock exchange is at all time highs getting funding for small business is still very difficult.
However, AtPledge are market leaders in short term funding for business so please contact us to day for your immediate requirements. We can provide you with all types of secured loans tailored to your needs. The only requirement we have is that loans are secured against tangible assets. Please visit our website at for more details on our lending criteria.
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For a FREE, no obligation quote call us on 0800 810 1111 or 01604 901101 or contact us online.