Finance firm Regency Factors has been approved by a government scheme, which will help support small businesses that cannot provide security for loans. The Bury-based invoice finance firm was recently approved for the enterprise finance guarantee (EFG) scheme. Under the initiative, the government provides a guarantee to the lender of 75 per cent of the loan amount and can be used to support firms that cannot provide the amount of security that is usually required to secure finance.
John Farrell, chief executive of Regency Factors, said the scheme will help businesses previously considered to he high risk. He said: “We see a lot of businesses which we think are good quality and perfectly viable but we cannot support because they cannot provide adequate security. “This accreditation means that we can now consider what are perceived to be a higher risk propositions. “Of course this doesn't mean that we will now just lend to anyone but that we can lend to businesses where the only thing that was stopping us previously was the lack of security.”