Aldermore today confirms it is now an accredited lender under the Invoice Finance and Term Loan variants of the British Business Bank’s Growth Guarantee Scheme (GGS), the successor scheme to the Recovery Loan Scheme (RLS), under which Aldermore was also an accredited lender.
The GGS provides Aldermore and other accredited lenders with a government-backed guarantee and the borrower remains 100% liable for the debt. This scheme is designed to support access to finance for UK SMEs as they look to invest and grow. It also aims to improve the terms on offer to borrowers and is available to both existing Aldermore Invoice Finance clients and new prospective clients.
Aldermore’s Invoice Finance GGS features include:
• Maximum facility of £2m per business group
• Fixed £ value up to the maximum of the facility review limit, with value to be determined by Aldermore
• Increase on facility limit can be considered to accommodate some extraordinary events but cannot include inter-company debt, aged debtors and disputed debt.
Aldermore’s term loan GGS features include:
• Sits alongside the client’s invoice finance facility with Aldermore
• Term loans between £25k and £2m per business group1
• Term length available between three months to six years.
Chris Meldrum, Head of Business Development of Invoice Finance at Aldermore comments: “As a long-standing partner in Government backed lending schemes, it’s a natural step to now offer the Invoice Finance variant of the Growth Guarantee Scheme. This initiative allows us to continue providing vital financial solutions that help businesses invest, scale, and drive economic growth.
“At Aldermore, we understand the challenges SMEs face in accessing finance, and we’re committed to offering flexible and tailored funding options that empower them to succeed.”
Reinald de Monchy, Chief Banking Officer, British Business Bank said: “We’re delighted that Aldermore has been accredited as a delivery partner under our Growth Guarantee Scheme. Their provision of Invoice Finance and Term Loans will help to increase the choice and diversity of finance available to smaller businesses in the UK. We look forward to seeing the growth that Aldermore can help generate for the businesses they support.”
**Ends**
1 The maximum amount of a facility provided under the scheme is generally up to £2m (depending on any previous relevant subsidies or whether the guarantor has notified the lender of any such other sum in accordance with the GGS guarantee agreement) per business group for borrowers outside the scope of the Northern Ireland Protocol, and generally up to £1m (depending on whether any particular industries with lower limits are involved, whether any previous relevant subsidies or whether the guarantor has notified the lender of any such other sum in accordance with the GGS guarantee agreement) per business group for borrowers inside the scope of the Northern Ireland Protocol.
Personal guarantees can be taken at our discretion, in line with our normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
Key eligibility criteria for GGS. Note: Other Aldermore specific criteria will apply. If we can offer finance on normal commercial terms, we will do so:
• 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
• Access to multiple schemes: 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
For further information contact:
For further information, journalists can contact our PR Team.
For further information about Aldermore, please review our Notes to Editors page.