Zeros Ltd Chartered Accountants & Xero accounting software are here to get you the best financial support for your business, from the government, in this present climate.

Zeros Ltd is wholly supportive of the new Enterprise Finance Guarantee Scheme, which will support up to £1.3 billion of new lending by banks to viable SME’s with working capital or investment needs.

The scheme is open to businesses seeking loans up to a million pounds repayable over a period maximum period of ten years. Most sectors will be eligible from the scheme, which is a significant departure from the previous loan guarantee scheme, which had significant restrictions.

The guarantee can be used to support new loans, re-finance existing loans or to convert part or all of an existing overdraft into a loan to release capacity to meet working capital needs. The key element is that the EFG is available to viable businesses that in normal circumstances would be able to secure lending from banks but who cannot secure bank lending in the current climate.

The government will guarantee 75% of the loan and most major clearing banks are participating lenders. That said, please remember that your current institution will remain ‘at risk’ for the other 25%, which is why they will demand the following:

(a) A viable business plan for the future which should be forward thinking and expansive.

(b) A completed application form in the required specification by the banks.

(c) Up-to-date management accounts and last years completed statutory accounts.

(d) A good reason for the loan, remember banks normally do not lend to prop up a loss making business.

We have a specialist dedicated team in Zeros Ltd to manage these applications, we have good contacts with RBS, Barclays Bank & Nat West who are receptive to applications at the present time.

Of equal importance is the production of management information going forward which is why Zeros Ltd Chartered Accountants as a specialist firm only dealing with clients using the Xero accounting software product, believes that this is the perfect management information tool for monitoring companies progress and allowing banks to access this easily on-line which they have already indicated is extremely helpful.

We are charging a standard fixed fee on a contingency basis, which means that we will charge 2.5% of the amount secured under the Enterprise Finance Guarantee Scheme which of course can be added to the loan. If we fail to obtain an offer of finance then we will not charge you any fee at all.

The scheme which replaces the SFLG (Small Firms Loan Guarantee) provides loans of £1.000 to £1 million for business turning over up to £25 million.

Please contact Chris Reid, FCA at chris@zerosltd.com immediately to discuss your own requirements.