Term-loan use and structure
Businesses may discuss a term loan with an accredited lender for eligible business funding needs. The lender considers the proposed purpose, amount, repayment source and its product criteria. Scheme rules provide a framework, but the lender determines whether a loan is suitable and what terms it can offer.
- Explain the intended use and expected business benefit.
- Match the requested amount and repayment period to cash flow.
- Confirm whether any existing facilities count toward the group cap.
Term and total borrowing
The scheme term range for term loans is three months to six years, with a minimum facility amount of £25,001. The usual maximum total scheme-backed borrowing is £2 million per group; the Northern Ireland Protocol cap is £1 million per group or lower in certain sectors. The lender decides whether to offer a facility and its actual terms.
- Term loans: £25,001 minimum and three months to six years.
- The group borrowing cap may be lower in Northern Ireland.
- A scheme term limit does not mean a lender must offer that duration.
Costs, security and repayments
The lender sets interest, fees, repayment schedule and any required security. It may consider a personal guarantee at its discretion, subject to scheme restrictions; a principal private residence cannot be taken as security. Compare the full agreement and consider independent professional advice where appropriate.
- The borrower owes 100% of the amount borrowed.
- Ask for a clear schedule of all charges and repayments.
- The guarantee does not guarantee a lower rate or approval.