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
Financing a £120,000 asset with a £20,000 deposit leaves £100,000 to finance. At 8% over 48 months with no balloon payment, the instalment is £2,441.29 a month. With a £20,000 balloon payment due at the end, the instalment falls to £2,086.37 a month, and the total payable including the deposit is £140,145.62.
A balloon lowers the monthly cost but leaves a large payment at the end, and interest is charged on the balloon for the whole term.
Asset finance agreements and Green GGS
Asset finance covers hire purchase, leases and other agreements. Whether you end up owning the asset, how a deposit or residual is treated and how VAT works depend on the agreement, so this calculator does not assume any of them. Check your agreement.
The British Business Bank is running a pilot to enhance the scheme's ability to support businesses investing in sustainable assets, called Green GGS. Its scheme page describes the pilot but does not set out separate repayment terms, so ask your lender what it offers. The calculator works the same way for a Green GGS facility.
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 amount financed is the asset price less the deposit. With a balloon payment F, the monthly instalment is (P − F ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n), where P is the amount you repay the lender, r is the annual rate divided by 12 and n is the number of months. At a 0% rate it is (P − F) ÷ n. Fees can be paid separately, added to the loan or deducted from it.
It models fixed-rate agreements with equal monthly instalments. It does not model variable rates, other payment frequencies or lease rentals that are not interest-based. 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.
For equipment finance that isn't under the scheme, use the asset finance calculator.
To weigh two or three quotes, use the GGS loan comparison calculator.
Equipment finance by sector: construction,
In manufacturing? See GGS for manufacturers.
In transport? See GGS for transport businesses.
Inputs for the GGS asset finance 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.
Asset price
The full purchase cost of the equipment, machinery or vehicle.
Deposit
The money you pay yourself at the start. It comes off the amount financed.
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.
Interest rate (nominal, not APR)
The annual interest rate before monthly compounding. Lenders set the rate, so enter the rate from your quote.
Term
How many monthly instalments you will make, from 3 to 120. Terms over 72 months depend on your lender.
How often you pay
Most agreements are monthly. For quarterly payments the term must be a whole number of quarters, and the rate is divided by four for each quarter.
Final balloon payment
A lump sum due at the end, if your agreement has one. Leave at 0 if it doesn't.
Fees
Enter any lender arrangement fee, broker fee and other upfront charges, then say how they are paid: separately, added to the loan or deducted from it.
CALCULATOR QUESTIONS
GGS asset finance 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.
Does every asset finance agreement have a balloon payment?
No. Many agreements have equal instalments only. Enter a balloon only if your agreement has a final payment.
Will I own the asset?
It depends on the agreement. Hire purchase usually ends in ownership, while a lease may not. Check your agreement.
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.