Real help with finance now

Managing a business can be challenging enough at the best of times but, in this difficult climate, finding business finance and getting practical advice is critical.

Government help

The government has launched a package of financial measures that will help viable businesses with temporary cashflow difficulties. These supplement existing government help already available.

Use our new interactive tool to find out if one of these schemes is suitable for you.

Government guaranteed lending

The government has launched a package of financial measures that will help enable banks to continue or resume lending to viable businesses with temporary cashflow difficulties.

Be prepared to research all possible options, and to negotiate with the lender, to get the best deal for your business. Since these are commercial products, participating lenders will determine individual borrowing eligibility.

Government guaranteed lending through the new Enterprise Finance Guarantee (EFG) is open to businesses with an annual turnover of up to £25million who are currently not easily able to access the finance they need. This will enable businesses to secure loans of between £1,000 and £1million. Note: all lending decisions will be at the discretion of the bank supplying the loan.

Find out more information about the new Enterprise Finance Guarantee

Working Capital Scheme (WCS) - government is also making available to banks guarantees of up to £10 billion, which will support bank lending of up to £20 billion. The purpose of this facility is to release capital which banks can redeploy in order to increase all types of lending above their current plans to businesses with a turnover of less than £500m.

Equity finance: capital investment

Equity funding is a way of raising share capital from external investors in return for handing over a share of the business. This may take many forms, including a share of future profits. The two main providers of equity finance for private investors are venture capitalists - also known as private equity firms - and business angels.

The government has launched a £75 million Capital for Enterprise fund (CFE) with £50 million of government funding which will allow companies to fund business development by selling debt in exchange for an equity stake in their business. The fund will provide equity and quasi-equity of between £250,000 and £2million for companies with turnover of up to 50 million euros, who have viable business models and growth potential in need of long term capital.

Businesses who would like to explore whether the fund might benefit them should call the Capital for Enterprise Fund Helpline on Tel 0845 4533780.

Find more information on the Capital for Enterprise fund on the Capital for Enterprise Ltd website

Find out more about the benefits and drawbacks of equity finance.

Since 2006, the government has established a multi-million pound equity finance scheme, Enterprise Capital Funds (ECFs), to enable funding, of up to £2 million, for businesses that require investment that falls within the 'equity gap' - more than business angels can supply and less than venture capitalists would consider.

Find out more information about ECFs on the Department for Business Enterprise and Regulatory Reform (BERR) website

Regional Loan Transition Fund (England only)

This is a £25 million initiative to help businesses at a regional level up to the end of June 2009. These funds are administered by Regional Development Agencies (RDAs) and provide loans in cases where all commercial lending options have been exhausted.

• Contact your local Business Link to find out what is available
• Search our Grants and Support directory

Other sources of funding and support

We have a number of guides and tools to help you find out what other options are available to you.

• Loans and overdrafts - practical help
• Get the right type of finance for your business
• Find other sources of funding and advice
• Use your business plan to get funding

Improve your finance readiness

• Assess the health of your business with our interactive tool
• Learn about your options for managing debt
• Managing a business during an economic downturn