Compass Business Finance has announced its accreditation to offer funding supported by the Growth Guarantee Scheme (GGS) through the British Business Bank, enhancing financial accessibility for UK small businesses aiming to invest and expand.
Replacing the Recovery Loan Scheme this month, the Growth Guarantee Scheme introduces significant enhancements, notably including asset-based lending (ABL) and invoice finance among its supported facilities. These additions aim to broaden the scope of financial solutions available to businesses seeking growth opportunities.
The scheme, backed by the government, enables lenders like Compass Business Finance to extend financing where traditional avenues may not suffice or to offer improved terms on business loans. This initiative is designed to facilitate easier access to diverse business finance products across the UK.
Compass Business Finance now offers several key financial products under the Growth Guarantee Scheme:
Term Loans: Ranging from £25,001 to £2 million for business groups, with flexible terms of up to 6 years.
Asset Finance: Supporting investments in both new and used machinery or assets, secured primarily against the asset itself.
Asset-Based Lending (ABL): Integrating multiple finance types to meet comprehensive funding requirements.
Invoice Finance: Allowing businesses to access between 85% to 90% of the value of their unpaid invoices promptly upon issuance.
Jamie Nelson, Director at Compass Business Finance, highlighted the significance of these additions: “We are thrilled that the Growth Guarantee Scheme now includes asset-based lending and invoice finance. ABL, in particular, offers substantially higher working capital compared to traditional funding methods like bank loans or overdrafts.”
Nelson further emphasized Compass’s track record in supporting businesses through previous schemes such as CBILS and the Recovery Loan Scheme. “Having provided financial support from day one under CBILS and subsequently under the Recovery Loan Scheme, we have assisted numerous businesses in securing the necessary funding to propel their growth. The GGS will enable us to continue this support where conventional funding may not suffice.”
With its commitment to innovation and customer service, Compass Business Finance is poised to leverage the opportunities presented by the Growth Guarantee Scheme, reinforcing its role in facilitating business growth across various sectors in the UK.