The National Loan Guarantee Scheme is a brilliant UK Government initiative which aims to reduce the cost of business loans. The scheme was launched in March 2012 and will subsidise up to £40bn in small business loans to help the UK’s small to medium sized enterprises.

How It Works

The scheme allows banks to lend directly to smaller businesses at a lower cost than would be the case with regular bank loans.

UK businesses with a turnover of up to £50m will be eligible to benefit from the scheme. Participating banks retain the full credit risk of the loans they make under the scheme. In many cases, the scheme will lead to a reduction in the cost of business loans of up to 1 percentage point.

Participating Banks

Currently Aldermore, Barclays, Santander, Lloyds and Royal Bank of Scotland have signed up to the scheme.

How To Apply

Businesses should contact one or more of the banks shown above. The loan application process is much the same as it would be for a regular commercial loan, whereby the bank’s usual lending criteria will apply.

A business will be eligible to apply for a loan under the NLG Scheme provided that it:

  • Has an annual turnover that does not exceed £50 million
  • Is a UK business
  • Is not currently in financial difficulty

Practicalities – how we can help you get that loan

My team and I are helping a number of my Business Mentoring clients to obtain a National Loan Guarantee Scheme loan in excess of £100k from participating banks. This is great news as it offers small businesses a method of getting cash into their business relatively cost effectively.

What we have found though, is that to achieve the desired loan a number of important steps must be taken to ensure the best possible business case is put forward to the local bank:

  1. Development of a professional looking business presenter that will WOW!
  2. Development of a comprehensive, robust business plan that includes realistic sales forecasts built upon solid assumptions
  3. Development of a sound set of financials that tie in seamlessly to the business plan

WITHOUT THE ABOVE, I CAN GUARANTEE YOU THAT YOUR APPLICATION WILL FALL ON STONEY GROUND!

On the face of it, this may seem like quite a straight forward and not that onerous a task. For the seasoned businessman or entrepreneur, this should be the case but for the un-initiated, it can be a painful and massively time hungry exercise as the level of professionalism required to create the right impact is extremely high.

Over many years using the tools I have developed, I have helped small businesses raise literally MILLIONS OF POUNDS. Together with my team, I am now applying these proven business and marketing techniques to creating professional presentation materials and in depth business plans that are receiving excellent feedback from banks offering NLG Scheme loans.

IF YOU NEED HELP WITH YOUR NATIONAL LOAN GUARANTEE SCHEME APPLICATION, CALL ME NOW ON 0208 9919 666 or email me