What is the Growth Guarantee Scheme (GGS)? Find Out if You’re Eligible

In Spring 2024, the UK government announced it would be extending the Recovery Loan Scheme, or RLS, which initially aided small businesses at the height of the COVID-19 pandemic. 

During this period, many business owners struggled to access funding, faced having to furlough employees, and even considered having to shut down completely, in the face of an uncertain route out of lockdowns.

Thankfully, that time has long passed – but SMEs can still access government-backed lending through the RLS under its current name, the Growth Guarantee Scheme, or GGS.

In this guide, we break down what the GGS does, how to check if you’re eligible, and how to apply.

What does the Growth Guarantee Scheme do?

The GGS is a borrowing scheme that allows eligible UK businesses to access up to £2 million per facility (£1 million for businesses within the Northern Ireland Protocol). 

It’s administered via the British Business Bank, and is available through accredited lenders (who our team can connect you to).

Any loans agreed under GGS are 70% guaranteed by the government, making it easier for smaller businesses to access funding as the economy continues to recover. At present, the scheme is open until March 31st, 2026.

This guarantee means that, if your business defaults on the funding, the accredited lender can recall 70% from the government. From your perspective, as a borrower, you are still 100% responsible to pay back any debt due – which is why it’s always vital to check any small print that might apply.

You can access GGS funding in the form of invoice finance, overdrafts, asset finance, and term loans. In Great Britain, funding through invoice financing starts from £1,000, and each business group can access £25,001 to £2 million. Within the NI protocol, the minimum remains the same, but you’re capped at a maximum of £1 million.

Who is eligible?

The Growth Guarantee Scheme is open to limited companies, limited partnerships, sole traders, corporations, community benefit societies, limited liability partnerships, and co-operatives.

You must:

• Operate and be incorporated in the UK
• Have been actively trading within the UK for at least two years
• Turn over less than £45 million each year
• Make at least half of your company revenue from trading activities (actively selling – unless you’re a charity or are based in further education)
• Intend to use funding purely for business purposes
• Have a viable business proposition
• Not be in any form of ‘difficulty’ (e.g., insolvency)

Beyond this criteria, accredited lenders will undertake full credit checks and check your case for fraud. The way checks are carried out will vary depending on the lender we arrange for you.

What’s more, in some cases, you may be able to secure funding through the GGS with a personal guarantee – but certain assets may not be eligible for security. As always, terms and conditions will vary based on the lender.

You won’t be eligible for the GGS if you run:

• A bank or building society
• A body in the public sector
• A school funded by the state
• An insurance company or reinsurer (brokers, however, are admitted)

You won’t be eligible, either, if you apply as an individual, but are not a sole trader.

How can I use funding through the GGS?

A ‘viable business proposition’, in the eyes of a GGS lender, can take on a few different shapes and forms. For example, you could use GGS funding to:

• Purchase equipment for your business
• Fund growth opportunities
• Pay for a large one-off purchase or fee
• Help balance your cash flow
• Invest in marketing or other resources

Ultimately, provided your borrowing intentions are legitimate and you have a clear plan for the funding you wish to access, there may be flexibility depending on the lender you work with.

GGS funding is classed as a subsidy. It’s worth keeping in mind that any subsidies you have already claimed over the past rolling three years may restrict how much you can access.

What will I need to apply with?

To apply for any GGS funding, you’ll always need clear accounts of your business’s management, with books made up to at least the last three years. Do also make sure you have a clear business plan in place, so you can reassure lenders that you’re able to pay back what you borrow, plus interest, within timescales agreed.

As mentioned, it’s also wise to have a clear record of any subsidy you might previously have received to hand, so your lender can allocate the right amount of funding.

In the event of a secured loan, you should also have a list of any assets you own, should you wish to use them as collateral. However, not all lenders will offer secured funding via the GGS.

Can I apply if my business has bad credit?

Yes – however, be prepared to expect that lenders offering GGS, along with other funding options, will have fewer opportunities available if you have poor or bad credit. 

Lenders assess GGS applications case by case, meaning there are still opportunities for businesses with bad credit to potentially find funding. If, for example, you have a strong enough business plan and/or the means to pay back the amount due under a GGS application, you may be successful.

However, if your business is currently in difficulty – i.e., it’s undergoing insolvency – you won’t be eligible to apply.

There might be a million and one reasons why you want to find finance for your business this year – but, at the same time, looking at all the different options and avenues available to you, getting started might seem like a pretty daunting task.

What kind of financing option should you choose for your business? How do you know if you’re prepared enough to apply for funding? What if your credit rating isn’t up to scratch?

We want to help you find the funding your business needs so it can grow to the next level. That might mean funding equipment finance, funding some commercial vehicles, or even getting enough money together to start a franchise. 

Regardless, our team wants to line up lending options that don’t just give you the capital you need, but at repayment rates and terms you can comfortably manage.

Let’s run through a few key points you might want to consider before applying for any kind of commercial finance, and reaching out to our team.

Think carefully about what you need the money for

It might be easy to assume that a basic business loan will cover most needs. That’s not exactly true – for instance, there are many different types of commercial finance out there to suit short and long-term borrowing, and to help you bridge gaps while you wait for money to clear.

Working with a commercial finance broker means you’ll have access to tons of knowledge on different niche products and services. You won’t have to worry about having to fit into a basic business loan unless it’s absolutely right for you – especially when there are so many other options available.

Here’s a quick breakdown, for example, of some of the business finance products we can help set up for you:

• Flexible business loans: Whether you want to buy out a company, access working capital while you find your feet, or simply put money towards some upcoming projects, we’ll help you find the right solution from over 120 trusted lenders.
  

• Equipment finance: Want to spread the cost of heavy duty equipment or tools over the next few years? Consider equipment finance, where you can find money for furnishings, fittings, machinery – and save money on upfront purchasing.
  

• Fit out finance: Similar to equipment finance, if you have an empty office or are taking over a shop or warehouse – and need some money to get it fitted out, fast – fit out finance can spread the cost of shelving, flooring, IT equipment, and more.
  

• Commercial vehicle finance: If you run a business that relies on you getting from A to B in commercial vehicles, or if you run a vehicle-based enterprise such as a catering van, it’s worth considering a commercial vehicle loan.
  

• Franchise finance: Growing your business into a franchise can be exciting, but can also require a lot of financial backing. Go beyond basic business finance and find a funding solution tailored to your franchise’s future growth and returns.
  

• Invoice finance: Customers owing you money on unpaid invoices? We can help you source financing options where you get the money now – and your invoices work as collateral.
  

• Profession loans: If you run a professional business – e.g., if you’re an optician, a dentist, or a vet – a profession loan can help you get started while you support your first patients and customers.
  

• Refinancing: Refinancing can be a fantastic option if you want to release money from machinery, equipment, and other assets already in your business portfolio or premises.
  

• New business finance: Whether you’re a start-up or a sole trader, everyone has to start somewhere – and this type of finance can give you a fair start regardless of the industry you’re stepping into.
  

• Growth Guarantee Scheme (GGS): The GGS is the current name for the Recovery Loan Scheme (RLS), which was originally set up to support businesses during COVID-19.
  

You don’t have to know exactly what type of funding to apply for straight away. That’s why it’s worth partnering with a broker who can offer a range of options to narrow down the field.

Consider how much you need

Deciding upon the exact amount of money you need to borrow, naturally, depends on what you’re going to use it for. 

You need to consider how much you can repay over a certain period of time. You can use our financial calculators for estimated repayment options.

Being transparent, honest, and concise about your funding amount shows lenders that you’re responsible, which again helps to build confidence. Start by considering how much you bring into the business each month, and how much you can guarantee to pay back from funding. Don’t depend on money that might come in – the last thing you’ll want to do is risk defaulting.

Start making a plan

Alongside carefully calculating how much money you want to borrow, you should have an ironclad business plan in place. Think of this as a growth plan that shows lenders where your business is projected to be over the next few years.

Again, this is a confidence-building exercise. Lenders won’t offer finance to just anybody – meaning that, along with some supporting documents, they’ll want to see that your plan ensures they get the money back that you’ll owe, along with interest.

Writing a business plan isn’t a precise exercise, but it’s something you should ideally get into if you’re just starting out. That said, even if you’ve been trading for a while, it’s also worth laying everything out flat so you have a clear roadmap of where you’re going – and, ideally, you should be thinking ahead by at least the next three years.

Ideally, your plan should include:

• A summary of what your business does in as much specific detail as possible
• Specific business targets that you aim to achieve over the next few years (financial or otherwise)
• Details about your target market, customers, and your competitors
• If you’re already in business, details on your revenue, loss, and expenses
• Information about what makes you qualified to run your business and stimulate growth (e.g., if you’re a web designer, you might want to draw on previous experience, a portfolio of work, and some professional qualifications)
• Details on how you run your business from day to day (do you have suppliers, insurance protection, and any back-up plans to support your business if all else fails?)
• Marketing tools and strategies you already (or intend) to use (to show lenders how you’ll bring money into your business)

Of course, all of these points will be words on a page – lenders may want you to supply some hard evidence of claims you make, which takes us to the next section.

Gather the right documents

Essentially, any documents and receipts you can bring together to support the above will help lenders make a more informed (and hopefully accepting) decision from your application. Ideally, you should bring together all of the following along with your plan:

• Detailed financial statements and accounts showing your cash flow
• Clear balance sheets that give a gradual overview of how your business is performing
• Tax returns, if applicable, to show your income and tax payments
• Proof of your ID, business ownership, and premises
• Asset details (for example, if you’re applying for a secured loan, you might offer proof that you own a property or vehicle that you’re putting up as security)
• Legal details relevant to the business (e.g., Companies House documentation)

This list is by no means exhaustive – meaning it’s a good idea to speak to an account manager at Origin before you apply if you’re unsure.

Understand the key terms

Of course, whenever you enter into a business finance agreement, you’ll have access to all the terms and conditions you need to help you understand when you need to pay money back, and how much. As a broker, we only work with lenders we know and trust – meaning you can trust them, all the same.

Key terms you should keep an eye out for when applying for business funding include interest, which refers to how much your lender will charge per year on top of your repayments.

There’s also collateral, which refers to an asset or security you might need to supply to secure your loan (and which the lender can seize if you miss payments or break the arrangement). Secured loans always use collateral – again, as another type of confidence for the lender.

You should also keep an eye out for terms such as early repayment fees, which might apply if you’re able to pay back before the end of your agreement, and variable rates, which can mean that the interest you pay throughout your repayment period is subject to change, based on market fluctuation.

There’s quite a bit to consider – but don’t worry. When applying for finance through Origin, you’ll have a complete breakdown of everything you need to know before signing and agreeing to funding.

And, to prepare you even further, we’ve put together a large glossary of some of the most important terms you’ll come across when researching and applying for funding.

Take your time

Financing any kind of business can get stressful sometimes. However, we aim to make finding the right lenders and solutions as worry-free as possible.

Regardless of where you are in your business journey, and no matter what you need commercial capital for, we will help you line up a supportive and feasible plan to help you grow your business as efficiently as possible.

If you’re ready to find out what funding might be available to you, contact Origin for a free quote with no obligation – and start making big plans to get your business going places.

Navigating business finance can be a complex endeavour if you’re unfamiliar with many of the terms and phrases used. 

To help get you up to speed with some of the key terminology you’ll come across when arranging business finance, here’s a simple glossary to break down all the facts and definitions.

Acceleration Clause

Acceleration clauses can request that money be repaid immediately and in full. This can occur when a borrower defaults on their arrangement. It is similar to a Due On Demand clause, where a lender can request full repayment without warning.

Amortisation

Amortisation is the process of reducing a balance by making scheduled payments.

APR (Annual Percentage Rate)

APR refers to how much interest you’ll accrue on an amount borrowed over a year. This is reflected as a percentage, which applies to your borrowed money.

Asset

Assets are resources you own, either as a sole trader or a company, that can be used as collateral or invested in as part of a portfolio. Assets can, for example, be property, physical cash, vehicles, or investments.

Asset Finance

Asset finance is a type of business borrowing that revolves around purchasing equipment or other tangible assets for your firm. It is similar to fit out finance, and in some cases, the asset you borrow towards can become collateral (meaning the lender can seize it if you break terms).

Assignment

When finance is transferred to another lender, broker, or other type of party, it’s assigned.

Balance Sheet

A balance sheet effectively breaks down your business’ financial picture and position. It typically includes any open liabilities, equity, and assets that are currently applicable.

Balloon Payment

A balloon payment is a final amount paid that ends a borrowing period. In some cases, balloon payments are larger than those paid throughout the repayment period.

Bankruptcy

Bankruptcy is a process through which business owners declare that they cannot pay their debts or reach arrangements with lenders and creditors. This can lead to closing down of businesses, reallocation of assets, and long-term credit score marking.

Base Rate

The base rate is a rate of interest lenders pay when borrowing money via the Bank of England. The BofE reviews this rate every six weeks, and the amount lenders pay will also affect how much you pay over a repayment period.

For example, in February 2025, the BofE set the base rate at 4.5%, taking into account current and future economic conditions.

Bill of Sale

A bill of sale is a legally binding document that shows when and how assets were purchased, and the total purchase price.

Bridging Finance

Bridging finance refers to short-term borrowing that helps you ‘bridge the gap’ before you receive a specific amount of expected capital or investment. Business owners often use bridging loans to secure properties while waiting on other finance applications to complete.

Capital Gains Tax

When filing tax returns with HM Revenue and Customs, you need to pay Capital Gains Tax if you sell any assets, bonds, or stocks, and make a profit from the sale(s).

Capitalised Interest

Capitalised interest gradually accrues on top of and is added to your principal balance. 

Cash Accounting, or Cash Basis Accounting

Cash and cash basis accounting refer to the recording of income and outgoings at the time of money actually exchanging hands. Many business owners in the UK determine their tax figures on cash basis, i.e., when they actually receive money invoiced for.

Cash Flow

Put simply, cash flow refers to how and where money flows in and out of your business and helps to measure your liquidity.

Collateral

Collateral is also known as security – it’s frequently an asset that you might pledge when arranging a secured loan. For instance, you might need to offer your business premises or vehicle as collateral to secure finance.

Compound Interest

Compound interest is a complete calculation of interest due on your principal balance and any accrued interest. Compound interest can often lead to business owners paying more back over time, and occasionally extending payment arrangements.

Contingent Liability

Contingent liabilities are specific payments that can arise when a specific event or clause demands them.

Convertible Loan Notes (CLNs)

CLNs offer physical proof of business lending that you can later exchange for equity.

Credit Rating

Your credit rating, or score, is a grade based on your creditworthiness, i.e., your history in paying debt back in full and on time. Brokers and lenders use your credit rating to determine risk, and can decide how much you can borrow for how long.

In some cases, poor credit scores can result in lenders and brokers refusing to offer you money, which can appear as a mark on your credit report.

Creditor

A creditor is someone who gives or lends you credit – such as a bank or lender.

Debenture

Debentures are charges that can apply to collateral assets when you arrange secured financing.

Debt Consolidation

Debt consolidation is a process through which you merge multiple debts into a single payment. The process can help to make repayments easier, and in some cases, may prevent collection activity and reduce interest rates.

Debtor

A debtor is someone who owes money to a lender or creditor.

Default

A default is a failure to make agreed payments on schedule, resulting in termination of an agreement.

Depreciation

Asset depreciation refers to its gradual reduction in value over time – this can, for example, typically occur to vehicles.

Dividend

Company dividends are portions of your business earnings that you pay to shareholders. These can take the form of cash payments or further shares in your firm.

Drawdown

Drawdown can refer to the depreciation in value of an asset. Drawing down, meanwhile, refers to borrowing money on specific dates or occasions as agreed with lenders.

Encumbered Asset

An encumbered asset is one that is already being used towards financing collateral.

ERC (Early Repayment Charge)

An ERC can come into effect if a borrower pays back their total amount before the end of the repayment period. Effectively, it ensures lenders receive the interest they agreed upon.

Equity

An owner’s equity is the overall value of their business. It’s calculated by removing costs of liabilities from total asset values.

Equity Finance

Business owners can finance themselves by selling parts of their equity or selling shares, effectively reducing their total ownership. Many people choose this option to avoid repayment schedules and interest.

FCA (Financial Conduct Authority)

The FCA is an important UK regulator that’s responsible for ensuring consumers and borrowers’ rights are protected. The FCA also oversees market trading.

Fiscal Year

A fiscal year is an accounting period that runs for 12 months – but it doesn’t have to run from January to December. For example, many business owners report a fiscal year of April to March when filing tax returns.

Fit Out Finance

Fit out finance is an arrangement typically used to help fund tangible business assets such as equipment, fittings, furniture, and even flooring, building materials, and signage.

Fixed Interest Rate

Fixed interest rates remain the same for as long as your finance agreement stands. They help to keep borrowing predictable and easy to budget for.

Float

Similar to an initial public offering (IPO), a float is the first offering of shares to the public through a private firm.

Fully Drawn Advance

Fully drawn advances are borrowing options that are typically secured with the view to fix an interest rate in place.

Grace Period

Sometimes, lenders offer grace periods where borrowers can make missed payments without defaulting on their agreements or accruing fines.

Gross Income

Your gross income is how much your business has made before you deduct dividends, staff wages, taxes, and salaries.

Guarantor

Guarantors can take responsibility for borrowers’ debt if they fail to make payments as agreed, or if they can no longer adhere to a financial schedule.

Insolvent

An insolvent company or debtor is one that cannot afford to pay the debts when they’re due.

Invoice Finance

Invoice finance refers to borrowing where a business can convert unpaid invoices into available capital. This type of finance can include invoice factoring, where you receive a sum in return for passing debt collection to an expert on your behalf.

Liabilities

Business accounting liabilities are payments your firm must pay and settle in the future, and are accounted for on your balance sheet.

Lien

A lien is a claim to an asset that can be used as collateral. For example, a lender can exercise a lien to claim a property if a borrower defaults on debt.

Liquidation

Liquidation can refer to the immediate selling of company assets to make money, in particular in the event of a company winding down operations to pay back debts. 

Loan-to-Value (LTV) Ratio

Your LTV is a ratio comparing the amount of money you borrow and the value of an asset you are financing, such as a business premises or vehicle.

Margin

Your margin is the price difference between how much you sell a product for and the profit you make.

Material Adverse Change (MAC)

A MAC is simply an event during a borrowing period where you become unable to repay the money you borrowed, when you agreed.

Maturity Date

Your maturity date is the last day you must repay what you borrow – covering both your principal balance and any interest you’ve accrued.

Mortgage

Mortgages are long-term borrowing arrangements that specifically split the cost of buying premises over several years.

Overheads

Your company’s overheads are fixed costs that need to be paid so you can continue to run your business – for example, paying for energy rates and property rent.

Peer to Peer Lending

Also known as P2P finance, this lending option allows you to borrow money from individuals instead of companies and banks.

Personal Guarantee

A personal guarantee is an arrangement where a company appointee agrees to take full or part personal responsibility for a specific debt. You don’t always need to take full responsibility – and therefore, at Origin, we offer capped guarantees to our customers.

Prepayment

Prepayments are contributions you make towards your debt before it’s due to be paid. However, you may still need to pay an early fee to account for interest due.

Principal

A principal sum is the agreed amount of money a lender or broker pays you in a single transaction.

Refinancing

Refinancing is the process of replacing a debt or loan with a new arrangement, usually in an effort to find a lower interest rate or more suitable terms and conditions.

Repossession

When an asset is repossessed by a bank or lender, it’s seized to pay towards a secured debt that has gone unpaid.

Retention of Title

In some financial agreements, you may be able to take physical possession of assets, but don’t become the official owner until the financial agreement is completed in full.

Reversion Rate

Your reversion rate is that which an agreement, such as a mortgage, may revert to at the end of a fixed-rate period.

Revolving Credit

A revolving line of credit allows you to borrow money when you need it, pre-approved, in much the same way as running a credit card or using an overdraft (where maximum limits apply).

Secured Finance

Secured finance refers to money that is backed by collateral, such as a physical asset, that a lender can seize if agreed payments are not adhered to.

Shares

Company shares are units of ownership, which grants holders certain rights to business earnings and assets. Shares are often paid in dividends.

Standard Variable Rate (SVR)

An SVR can apply at the end of a fixed-rate arrangement, whereby borrowers will need to pay a new rate of interest.

Subprime Mortgage

A subprime mortgage is a type of loan offered to people who have poor or negative credit. These mortgages are often payable at higher rates of interest than most, because lenders perceive risk of non-payment to be greater.

Taxable Income

Your company’s taxable income is the total amount on which HM Revenue and Customs can apply tax, after considering allowable expenses, deductions, and losses.

Term

A borrowing term is the period of time during which you borrow money, with the end point being when you pay it back.

Tranching

Tranching is the division of finance into manageable amounts, such as a loan with some money available to you right away, and further amounts available later on in an agreed period.

Underwriting

When lenders assess the risks involved with setting up finance with a new borrower, they underwrite their request by researching credit histories, current financial positions, market predictions, and potential hazards that could cause payments defaulting.

Unsecured Finance

With unsecured finance, you don’t need to offer an asset as collateral. However, you may often pay higher interest rates, simply because the lender has less of a safety net.

Valuation

A property valuation is carried out by an expert appointed by a lender to assess the true value and security required for the premises in question.

Variable-Rate Mortgage

A mortgage where the interest rate can change based on market conditions, typically tied to a central bank rate.

Variable Interest Rate (VIR)

A VIR changes with market values, ensuring that lenders continue to receive adequate reparation in line with economic change.

Volatility

Volatility refers to how much the price of an asset can change over time. Many investors use volatility to assess risks before buying and selling.

Working Capital

Working capital finance is short-term borrowing that helps businesses to keep running. For example, you might use this money to pay for staff salaries and benefits.