Ask the Expert - Laura Hampson, PKF, Accountants & Business Advisors

Unfortunately, the answer to the question is that banks are not lending under the new EFG scheme as the Government publicised they would.  We are seeing a move towards the scheme by banks, but generally it is with their existing customers where they are converting existing lending or providing new lending without a huge increase in the exposure of the bank.  There are still some of the same hurdles as with the old SFLGS, but some of the issues around the age of the business have been removed.  A key point to note is that the banks can and do ask for security for the loan, generally in the form of Personal Guarantees and we are seeing them look at all shareholders for the security.  Depending on the technology your business specialises in may mean the bank has a good or bad appetite for lending in the Sector.  The best way forward is for you to have a conversation with your relationship manager to see whether the bank has an appetite for the Scheme and what level they would consider lending to you at - there is no harm in asking the question and certainly having a good level of working capital in the current climate is key.  Also, depending on the level of funding required there are also specialist lenders who can provide funding under the scheme at the lower level.