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Key Information Scheme Features Eligibility Criteria Invoice Finance Options

About The Growth Guarantee Scheme

The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If Aldermore can offer a commercial loan on better terms, they will do so.

Growth Guarantee Scheme-backed facilities are provided at the discretion of Aldermore. We are required to undertake our standard credit and fraud checks for all applicants.

Aldermore are accredited for the Invoice Finance and Term Loan variants of the GGS.

Key Information

Invoice Finance Variant

  • A fixed £ value up to a maximum of the facility review limit. Value is determined by the lender.
  • A maximum facility of £2m per business group
  • Available for terms between 3 months and 3 years

Term Loan Variant

  • Sits alongside the client’s invoice finance facility with Aldermore
  • Term Loans between £25k and £2m per business group.
  • Available for terms between 3 months to 6 years

Invoice Finance Variant

  • A fixed £ value up to a maximum of the facility review limit. Value is determined by the lender.
  • A maximum facility of £2m per business group
  • Available for terms between 3 months and 3 years

Term Loan Variant

  • Sits alongside the client’s invoice finance facility with Aldermore
  • Term Loans between £25k and £2m per business group.
  • Available for terms between 3 months to 6 years
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Growth Guarantee Scheme Features

The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland  Protocol, and up to £1m (or such other sum as notified from time to time by us to the lender in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset based lending and invoice finance, and £25,001 for term loans and overdrafts.

Growth Guarantee Scheme supports term loans, overdrafts, asset based lending and invoice finance facilities. Not all lenders will be able to offer all products.

Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years.

Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for.

Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The lender’s pricing will take into account the benefit of the Government guarantee and a fee that is charged to the lender for the guarantee.

Personal guarantees can be taken at Aldermore’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.

The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.

Growth Guarantee Scheme-backed facilities are provided at the discretion of Aldermore. Aldermore and are required to undertake our standard credit and fraud checks for all applicants.

The assistance provided through Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available on the British Business Bank website.

Eligibility Criteria

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
  • UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;
  • Viability test: Aldermore must consider that the borrower has a viable business proposition;
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
  • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received
For full details, download our PDF
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Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.

About the British Business Bank

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.

Our Invoice Finance options

  • Invoice Discounting

    With invoice discounting you can convert invoices into working capital, whilst staying in control of your own invoice collections, meaning your facility can be completely confidential.

    Suitable if you:

    • Need to access cash tied up in outstanding invoices quickly
    • Have an established in-house credit control department
    • Would like the option of a confidential facility
    Invoice Discounting

  • Factoring

    With Factoring we provide a credit control service, which means you don’t have to worry about chasing up your customers' outstanding invoices.

    Suitable if you:

    • Need to access cash tied up in outstanding invoices quickly
    • Do not have an in-house credit control department
    • Benefit from our experienced credit control team to take care of debt collection
    Factoring

  • Asset Based Lending

    Asset Based Lending allows you to access funding by releasing the cash tied up in existing assets, such as machinery and property.

    Suitable if you:

    • Require a higher availability of working capital
    • Need access to funding secured against multiple assets within your business
    • Are looking at change such as restructuring, mergers or acquisitions
    Asset Based Lending

  • Receivables Finance

    Receivables Finance can help if you’re a business that typically sells goods or services to high quality debtors, where payment can be deferred for a longer period of time.

    Suitable if you:

    • Typically operate under contracts
    • You have delivered goods or services, but payment is deferred between one to three years.
    • Your debtor is very high quality and payment is unconditional on future contract performance.
    • Need access to advance funding against your deferred payments
    Receivables Finance
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Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.