Fixed Rate Soft Asset Loan
Supported by The Growth Guarantee Scheme Our new product - Fixed Rate Soft Asset Loan, backed by the British Business Bank’s (BBB) Growth Guarantee Scheme (GGS) — giving you a way to say yes to good businesses that might have purchases not captured under traditional hard asset finance.
What is GGS?
The Growth Guarantee Scheme (GGS) is designed to support access to finance for UK small businesses as they look to invest and grow. The scheme aims to provide greater certainty over credit risk, enabling InterBay Asset Finance to provide finance to more viable smaller businesses that they wouldn’t otherwise consider. If InterBay Asset Finance can offer a commercial loan on or better terms, we will do so. Growth guarantee scheme backed facilities are provided at our discretion, and we must carry out standard credit and fraud checks for all applicants.
Overview
- A UK Government guarantee scheme helping viable businesses access finance they couldn't get commercially, or only at a higher price.
- An extension and rename of the Recovery Loan Scheme Phase 3 (RLS Phase 3), with updated terms under the new Guarantee Agreement.
- The guarantee sits between Government and IBAF as the lender — it is not provided to the borrower.
- Borrowers can hold more than one GGS/RLS Phase 3 facility and may also have benefited from BBLS, CBILS, CLBILS or RLS 1/2 — but a Maximum Amount cap applies.
Liability
- The GGS guarantee does NOT remove the borrower's liability for repaying their GGS-supported facility, or reduce any personal guarantor's liability.
- If a borrower defaults, IBAF is entitled to recover the full amount outstanding from them — the guarantee doesn't change that.
- Any money IBAF receives from Government under the guarantee does not reduce what the borrower owes.
- Security - IBAF will take security where it's available, in line with our standard lending policy — subject to the restriction on taking security over a Principal Private Residence (PPS).
- Personal Guarantees - Personal guarantees may be used for GGS facilities at IBAF's discretion, in line with normal lending policy.
Growth Guarantee Scheme features
Up to £2m per business group:
The maximum amount for a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to£1m per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and£25,001 for term loans and overdrafts.
Wide range of products:
The Growth Guarantee Scheme supports term loans, overdrafts, asset finance, invoice finance, and asset-based lending facilities. Not all lenders will be able to offer all products.
Term length:
Term loans and asset finance facilities are available from three months up to six years, with overdrafts, invoice finance and asset-based lending available from three months up to three years.
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 the Growth Guarantee Scheme, but borrowing under some of these schemes may reduce the maximum amount the borrower is eligible for.
Pricing:
Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The InterBay Asset Finance pricing will take into account the benefit of the Government guarantee and a fee that is charged to the lender for the guarantee.
If you’re dealing with a vulnerable customer, or are concerned they may have vulnerabilities, you can contact us in the following ways:
0345 120 2007
fleetsales@interbayassetfinance.co.uk