Standard commercial term loans
For businesses with strong credit profiles, property to offer as security, or established relationships with their bank, a standard commercial term loan outside any government scheme may be competitive with or better than a GGS facility.
Mainstream banks offer unsecured business loans to established customers with clean credit histories, often at rates comparable to GGS pricing for the strongest profiles. Term loans from challenger banks such as OakNorth, Shawbrook, and Cynergy Bank are worth exploring for larger, property-backed facilities.
- High-street banks: HSBC, NatWest, Barclays, Lloyds - for established customers with good credit
- Challenger banks: OakNorth, Shawbrook, Cynergy - for property-backed lending
- Specialist commercial lenders: Aldermore, Close Brothers - for sector-specific lending
- Terms up to 10 years typically available for property-secured borrowing
- No MFA cap or scheme eligibility criteria to navigate
Asset finance
Asset finance is often a more appropriate solution than a GGS term loan when the borrowing purpose is the acquisition of equipment, machinery, vehicles, or technology. The asset itself acts as security, which means the lender's credit requirements are typically less stringent than for unsecured or lightly secured borrowing.
Finance lease and hire purchase products allow businesses to spread the cost of assets over their useful life without tying up working capital. Rates are often competitive with GGS pricing for asset-backed transactions, and no MFA declaration is required.
Invoice finance
For businesses with a B2B sales ledger and cash flow challenges caused by slow-paying customers, invoice finance is often a more efficient solution than a term loan. Rather than borrowing a fixed sum against future cash generation, invoice finance releases the value tied up in existing unpaid invoices.
Invoice factoring and invoice discounting facilities scale with your turnover and do not require government scheme compliance. They are typically quicker to set up than a GGS term loan and can provide ongoing working capital support rather than a one-off cash injection.
Revenue-based finance
Revenue-based finance provides a cash advance repaid as a percentage of future revenue. It suits businesses with consistent and predictable income streams, including subscription-based models, businesses with regular card payments, and those with recurring B2B contracts.
The key advantage is flexibility: repayments fall when revenue is lower and rise when revenue is higher, smoothing the impact on cash flow. There is no fixed monthly commitment, which reduces the risk of default during quieter periods.
Merchant cash advance
A merchant cash advance (MCA) is a form of revenue-based finance specifically designed for businesses that take card payments. The advance is repaid via a daily holdback of a percentage of your card takings. MCAs are accessible, fast, and do not require security, but they are typically more expensive than GGS loans on a per-pound basis.
MCAs are best suited to hospitality, retail, and service businesses with consistent card revenue that need quick access to working capital. They should not be used as a substitute for longer-term investment capital.
Regional and innovation grants
For qualifying businesses, non-repayable grants may be available through Innovate UK, local enterprise partnerships, the UK Shared Prosperity Fund, and various regional development bodies. Grant funding is the most cost-effective form of support but is competitive and often restricted to specific purposes such as R&D, innovation, or job creation in particular regions.
Grants do count as Minimal Financial Assistance in many cases, so their receipt will reduce the amount of GGS-equivalent MFA you can access. For businesses already close to the £315,000 cap, it is worth checking the MFA classification of any grants before applying.
Frequently Asked Questions
Is there a successor to the Growth Guarantee Scheme?
The British Business Bank regularly reviews and launches new guarantee schemes. The GGS succeeded the Recovery Loan Scheme, which itself succeeded CBILS. Any successor scheme would be announced through the British Business Bank and accredited lenders. Spark Finance can advise on the current landscape of government-backed and commercial options.
Can I use the GGS and another loan at the same time?
Yes. There is no restriction on holding a GGS facility alongside other commercial borrowing, provided the GGS borrowing is within the scheme's parameters and the combined debt is serviceable. Lenders will consider your total debt position as part of their credit assessment.
Is asset finance better than a GGS loan for equipment purchases?
For equipment purchases, asset finance is often more appropriate because it matches the loan term to the asset's useful life, uses the asset as security (reducing personal guarantee requirements), and does not require MFA compliance. However, if the equipment is second-hand or unusual in nature, a GGS term loan may be more flexible.
What is the fastest way to access business finance?
Merchant cash advances and revenue-based finance can fund within 24 to 48 hours for qualifying businesses. Invoice finance facilities can typically be set up within 1 to 2 weeks. GGS term loans generally take 2 to 4 weeks from application to drawdown. For large or complex facilities, allow 4 to 8 weeks.