Enterprise Finance Guarantee

If lack of security is stopping you from borrowing to start up, expand or diversify your business or increase your working capital funding, an Enterprise Finance Guarantee loan could be for you.

At a glance

  • Borrow between of £10,0001 and £1,200,0002

  • Flexible repayment terms between three months and ten years

  • Individually negotiated interest rates and fees

  • Choice of fixed or variable interest rates

  • HSBC current account not required

Speak to one of our experts

Call us on

0800 0113317

Lines are open from 8am to 10pm every day, excluding Christmas Day, Boxing Day and New Year's Day

Key benefits

A way to secure funding if you've had a lending request turned down

The government can back your proposal to help you get the funding you need

Eligibility criteria

You could be eligible if:

  • you operate in the UK
  • your annual turnover is less than £41m
  • you have a sound business proposal
  • you operate in a sector that is eligible for Enterprise Finance Guarantees3
  • your purpose of the loan meets the eligibility criteria, for example:
    - starting trading
    - developing a project
    - expanding an existing business
    - buying equipment

Things to consider

  1. You are liable for repaying 100% of the loan and HSBC will always seek to recover the outstanding balance from you and any security taken under the loan. If HSBC cannot recover all funds, the Government provides a partial guarantee to HSBC to cover the lack of available security.
  2. An additional premium (equivalent to 2% per year) is payable once a quarter to the Department for Business, Innovation and Skills. This is in addition to any regular capital, interest, and arrangement fee payments that you make to HSBC.
  3. You are responsible for ensuring that you do not exceed the €200,0004 threshold for European Community State Aid, as a result of taking out an EFG.

Important information

1 A £25,001 minimum applies for sole traders and partnerships (excluding LLPs).

2 The £1,200,000 maximum applies to loans with a term of 5 years or less. The maximum loan amount for a term of 10 years is £600k.

3 Excluded sectors are Coal; Banking, Finance & Associated Services (except professional services); Formal Education (except vocational training); Insurance & Associated Services (except brokers & agents); Public Administration, National Defence & Compulsory Social Security.

4 €200,000 is the maximum amount of State Aid that any business may receive in a rolling 3 year period. Lower levels of State Aid apply to specific industries, for example agriculture, fisheries and road freight transport.

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Speak to one of our experts

Call us on

0800 0113317

Lines are open from 8am to 10pm every day, excluding Christmas Day, Boxing Day and New Year's Day

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