Frequently Asked Questions
1. Who can apply for a loan?
- Finance For Enterprise (FFE) loans support viable businesses which find it hard to access finance from banks and/or other mainstream sources.
- Loans are available to new start and established businesses alike.
- All SME businesses are eligible, including sole traders, partnerships, limited companies, LLPs and social enterprises.
- Applicants with an adverse credit history (both business & personal) will also be considered.
2. What can Finance For Enterprise loans be used for and what is the maximum value?
- Loans can be utilised for any legitimate business purpose, including:
Purchase of equipment or machinery;
Business expansion plans.
- Enterprise Loans are available up to £250,000.
- FFE acts as delivery partner for the national Start Up Loans Programme, funded by the British Business Bank (BBB), and applications for these will be considered up to £25,000.
- FFE is also a fund manager for the Northern Powerhouse Investment Fund.
3. How much does a loan cost?
- FFE loans are priced for risk and thus, the interest rate will be based on the attributes of each case including serviceability, security, and track record.
- Interest rate parameters are between 9% and 15% above the Bank of England base rate; interest is calculated on a reducing balance basis.
- An arrangement fee of 3% will also be charged.
- Early repayment of loans can be made at any time without penalty.
- If no security is available, loans will usually be made available using the Enterprise Finance Guarantee scheme (EFG) which carries a BBB fee of 2% pa, also calculated on a reducing balance basis.
4. What is the application process and timescale?
- Application forms are located on our website. To apply for funding, click here
- Ideally, applications should be accompanied by up to date financial information including annual accounts and, if available, current year management accounts.
- Business plans add additional benefit and are essential for Start Up Loan applications.
- FFE Investment Managers provide ongoing support during the application process and can offer guidance in the preparation of a business plan and financial forecasts.
- Whilst some applications are more complex than others, once all the necessary information is received, decisions are made within two weeks, usually less.
5. Is Finance For Enterprise regulated?
Regulated by the Financial Conduct Authority;
A British Business Bank regulated EFG lender;
A Responsible Finance member, committed to treating its customers ethically.