Royal Bank of Scotland has announced that it’s lent more than £100m to small businesses through the Enterprise Finance Guarantee (EFG) since it was launched in January.
The news will be welcomed by the thousands of small firms who are struggling to obtain finance, and who are deemed too high risk to meet the normal lending requirements of a business loan.
“It’s a guarantee that the government provides to the bank when those business have no more security to give,” explains Paul Ibbestson, chairman of business banking at RBS. “That enables the bank to lend money to viable businesses when they have no more security to give.”
You can watch Paul explain more about the EFG and how it works in the video above, taken from his exclusive interview with Smarta.
You can also find out more about the EFG from our bite-sized advice guide.