How the Growth Guarantee Scheme works
The Growth Guarantee Scheme (GGS) is a UK government scheme, run by the British Business Bank, that helps smaller businesses get finance. Accredited lenders offer term loans, asset finance, overdrafts, invoice finance and asset-based lending, and the government guarantees 70% of each facility to the lender.
The guarantee protects the lender, not the borrower. The business must repay 100% of the debt, so this calculator never reduces your costs for it. The lender decides whether to lend and sets the interest rate and fees. Lenders may take personal guarantees, and the scheme is scheduled to run until 31 March 2030.
Worked example
A business has £200,000 of eligible receivables at an 85% advance rate (£170,000), £100,000 of inventory at 50% (£50,000) and £80,000 of equipment at 60% (£48,000). The borrowing base is £268,000.
With £150,000 drawn, the available headroom is £118,000 and 56.0% of the base is used. At 9% the yearly interest on the amount drawn is £13,500.
Borrowing base, not a credit limit
The borrowing base is the most a lender would lend against your assets, before the scheme limit. Lenders also apply reserves, concentration limits, exclusions and other conditions that can lower what is actually available, and advance rates differ by lender. The default rates here are examples only.
This is an illustration of a borrowing base, not a guaranteed GGS credit limit.
See GGS for manufacturers and
Selling wholesale or retail? See GGS for wholesale and retail.
Borrowing limits and recent changes
The published limit is generally £2 million per business group, counting GGS and Recovery Loan Scheme borrowing since 1 August 2022. Term loans and overdrafts start at £25,001, and asset finance, invoice finance and asset-based lending from £1,000. In Northern Ireland, borrowers within the scope of the Windsor Framework can borrow up to £1 million in most sectors, £285,000 in primary agriculture and £170,000 in fisheries and aquaculture. Being in Northern Ireland does not by itself set the limit, and your lender confirms which applies. England, Scotland and Wales follow the same UK-wide limits.
On 12 July 2026 the Chancellor announced that GGS will support facility terms of up to ten years for term loans and asset finance, that the annual turnover limit rises from £45 million to £54 million, and £6.5 billion more lending over four years. The British Business Bank is working with accredited lenders to bring these in and says the scheme remains fully operational under its existing terms, so not every lender offers them yet.
How this calculator works
The borrowing base is the sum of each eligible asset value × its advance rate, less lender reserves and exclusions. Capacity is the smaller of the borrowing base and the headroom left under the scheme limit. Headroom is capacity less the amount drawn.
It uses the values and rates you enter and does not test them against a lender's eligibility rules. This is an independent tool, not run or endorsed by the British Business Bank or the UK government, and it does not tell you whether you will be approved. To find a lender, use the British Business Bank's official list of accredited lenders, which you can filter by region and type of finance.
To cost a single invoice, use the GGS invoice finance calculator.
For a standard business loan, use the business loan calculator.
Inputs for the GGS asset-based lending calculator
Where is the business based?
England, Scotland and Wales share the same limits. Choose Northern Ireland to apply its separate limits.
Northern Ireland borrower type
Shown for Northern Ireland only. The limit depends on whether the borrower falls within the Windsor Framework rules and on its sector.
Existing GGS and RLS borrowing
GGS or Recovery Loan Scheme borrowing your business group already has. It counts towards the limit, so only the headroom is left.
Eligible receivables
Unpaid invoices that meet the lender's rules.
Eligible inventory
Stock that meets the lender's rules, at the value the lender accepts.
Eligible equipment and other assets
Machinery or other assets the lender accepts as security.
Advance rates
The share of each asset's value the lender lends against. Lenders set them, so use their figures.
Lender reserves and exclusions
Amounts the lender takes off the base, such as reserves and ineligible items.
Amount drawn
What you have borrowed against the base.
Interest rate (yearly)
The yearly rate on the amount drawn. Lenders set it, so use the rate from your quote.
Yearly facility fee
A fee charged each year to keep the facility, if any.
CALCULATOR QUESTIONS
GGS asset based lending calculator questions
What is the Growth Guarantee Scheme?
A UK government-backed scheme where the government guarantees 70% of a business facility to the lender. The British Business Bank runs it.
Do I repay the guaranteed part?
Yes. The business is liable for the whole debt. The guarantee protects the lender, so it does not reduce what you owe.
Is the borrowing base my credit limit?
No. It is an estimate. Lenders apply reserves, concentration limits and other conditions, and the scheme limit also applies.
What advance rates should I use?
Use your lender's rates. The defaults here are examples, not scheme rules.
Who sets the interest rate?
The lender. Rates and fees vary, so compare offers from accredited lenders.
Does the calculator tell me if I'll be approved?
No. It shows how an amount sits against the published scheme limits. Accredited lenders decide whether to lend.
How do I apply?
Through an accredited lender. The British Business Bank website lists them and lets you filter by region and type of finance.