Our Loan Terms

Amount

Businesses can borrow from £25,000 up to £100,000. Applicants should confirm they have explored all other funding options including personal funds and borrowings, bank funding (including factoring and asset finance) and the potential for equity from venture capitalists.

Do I have to make a Contribution?

BLS normally provides up to 50% of the total funding required up to a maximum of £100,000. BLS would expect the other 50% to be sourced from the private sector, for example bank funding, directors / owners input, equity investment, HP etc.

In exceptional circumstances, the funding sought can extend to more than 50% of the total amount required. Where BLS is being asked to provide more than 50% of the funding package and where there may be a higher degree of risk associated with the project, additional information and / or security may be required.

Interest Rate

The interest rate is fixed at 6% for the term of the loan. If you are a new business (trading less than 12 months at the time of application) with a higher risk profile and / or low level of security available, a higher rate of interest may be applicable.

Additional Costs

Fee Free – no set up costs or early repayment charges.

Repayment period

Up to 5 Years.

How do I make repayments

Payments will be collected by Direct Debit on the 7th of every month.

Capital Holiday

Up to 3 Months Capital Holiday (if appropriate and agreed).

Security

Unsecured up to £50,000 (unless deemed very high risk where security may be sought). Over £50,000 typically secured by way of a Bond & Floating Charge and / or Personal Guarantees.

What is the process?

If your business meets the criteria you should submit an enquiry. Thereafter, a Loan Fund Officer will contact you to discuss your requirements and if everything is in order you will be given access to our Online Loan Application (OLA) system, where you can complete an application and upload all the relevant documentation.

Your application will be appraised and a decision made by BLS. If approved you will require to sign a loan agreement and any associated security documents. The funds will then be paid directly into your business bank account.

Timescale

We aim to make a decision within 2 weeks of receipt of your completed application with all relevant documents submitted. If approved, funds should be available within 20 business days of receipt of application and all relevant documents.

What can I use the Loan for?

Loans may be used for

  • Funding to get your business started
  • Working capital
  • Purchase of new or used plant, machinery or equipment
  • Purchase / expansion / renovation of business property
  • Funding innovation and expansion projects
  • Expanding into new markets.

Support

You will be assigned a Loan Fund Officer to assist during the application process. You can also receive ongoing support, advice & training from Business Gateway and Local Authority Economic Development teams.

Who is providing the Loan

The Loan is provided by Business Loans Scotland from the Scottish Growth Scheme - Business Loans Scotland Debt Finance Fund LP  (SL033447) and is fully financed by the Scottish Growth Scheme and the European Regional Development Fund (ERDF) through the European Structural Funds 2014 -2020 Programme.