Loan Security

How much risk is involved?


The bank must assess the risk of lending to you and decide whether security is required. This will depend on their evaluation of your business as a whole

• the prime source of repayment will be cash generated by your business and no amount of security will ever be acceptable if they feel that your business is not viable.
• The last thing they want to do is realise any security - they would much rather see a successful business continuing to trade.


They recommend that you take independent advice from your solicitor before you provide security.


If no security is available, they may be able to consider finance under the Government's Enterprise Finance Guarantee, if your business is eligible. This is a Government backed scheme to guarantee 75% of borrowing (for both businesses under and over 2 years established) where security is not available and where that lack of security is the only bar to a bank lending the money.

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