The government runs a number of finance schemes that may benefit law firms. If you are looking to take out or extend a loan or for new sources of funding as an alternative business structure there are several schemes aimed at helping firms access the finance they may need to grow:
National Loan Guarantee Scheme
Launched on 20 March, the National Loan Guarantee Scheme is aimed at reducing the cost of borrowing for firms with a turnover of less than 50m per annum. The following banks are participating in the scheme: Aldermore, Barclays, Santander, Lloyds and Royal Bank of Scotland. For more information on the details of the scheme visit the websites of the relevant banks or the scheme website.
The Enterprise Finance Guarantee
Established in 2009, this loan guarantee scheme aims to help viable small and medium enterprises (with an annual turnover of under 41m per annum) who are looking for a loan of between 1,000 and 1m. The scheme applies to a range of financing options including new term loans and guarantees up to 75 per cent of the loan value to the lender, with the borrower paying a 2 per cent premium that partly covers the cost of the guarantee. More information about the scheme.
Capital for Enterprise
On behalf of the Department for Business, Innovation and Skills (BIS), Capital for Enterprise runs a number of government business finance schemes which law firms may benefit from, whether partnerships or ABS. These range from traditional small firm loan guarantees to venture capital and business angel financing. For more information, including how to find out if your firm is eligible and how to make applications for funding, visit the Capital for Enterprise website.