Dear All.

My name is Dan; believe it or not I have been working on and trying to raise finance for a start-up idea of mine for many YEARS!

And after this amount of time I have come to the conclusion that the banks have bent the small firms loan guarantee (SFLG) to its own ends.

If you read the profile of the SFLG on this site or any other you will not here that 99% of the banks use this for match funding only!

If you require £20K for example they will use the SFLG for £10K and expect you to find the other £10K. This goes against the very nature of what the SFLG was intended for. I'm a recent graduate from university and have no house or any other kind of security for a loan. So the government in their infinite wisdom have come up with the SFLG, which we should thank them for. But only if it is used in the way they intended.

And that’s not all; I will still have to find the 25% security for the £10K the banks have reluctantly agreed to lend me!

At this moment in time it is easier to get a regular unsecured any purpose loan to fun d a start-up or even credit cards, both of which have a higher APR and need to be repaid from day one than to get a SFLG!

Ok im done with my rant!

Thanks

Dan.

P.s
Banks who have confirmed this with me are:

Natwest
Barclays
Yorkshire
Royal Bank of Scotland.

Has anyone else found this ??