Growth Guarantee Scheme interest rates and fees

Lenders set the rate

Interest rates and fees charged by lenders vary with the specific lending proposal. Lenders are required to pass on the economic benefit of the guarantee to your business after accounting for their costs of using the scheme, for example the scheme lender fee they must pay. Ask your lender what rate you would pay.

Because the rate depends on the lender and the proposal, any rate you see in a calculator is an illustration unless it comes from a lender's quote.

Fees and the 5% limit

The British Business Bank says it ensures certain protections, such as limiting lenders' upfront fees, including broker fees, to a maximum of 5%. It does not regulate the broker market, so brokers may charge fees outside their relationships with lenders. Some lenders have arrangements where the broker's fee is paid by the lender, the borrower or both.

Understand any potential fees before you go ahead, including who pays them and when.

Comparing offers

Fees can be paid separately, added to the loan or deducted from the money you receive, and each changes the cost. A fee deducted from the loan leaves you less cash while you still owe the full amount, so the true cost is higher than the stated rate. The effective annual rate in the comparison calculator allows for this.

Cheaper is not always better. Compare security, personal guarantees and early repayment terms as well as cost.

Compare lenders with the GGS loan comparison calculator.

Work out repayments and fee effects with the GGS loan calculator.