Finance is one of the hardest areas for any new business but also for established businesses as well. That old age cash flow is king is a constant worry for any small business.

The government provides three Solutions for Business financial products that might help you get your business started.

1) The Enterprise Finance Guarantee helps businesses that would not normally qualify to get a loan.

The Enterprise Finance Guarantee  provides lenders with a government guarantee for 75 per cent of lenders' exposure on individual loans. The Guarantee is part of the government's Solutions for Business portfolio and is available to businesses throughout the UK through approved lenders.

Participating lenders administer the eligibility criteria and make all their own commercial decisions regarding borrowing. The decision whether or not to use the Enterprise Finance Guarantee with any loan rests with the lender and follows their commercial assessment of the proposition. As with all lending you must be able to demonstrate to the lender that you can repay the loan.

The main points of the scheme are :

• A guarantee to the lender covering 75 per cent of the loan amount, for which the borrower pays a 2 per cent premium on the outstanding balance of the loan, payable to BIS

• Enables bank facilities of between £1,000 to £1 million and with terms of up to ten years

• Availability to qualifying UK businesses with an annual turnover of up to £25 million

• Availability to businesses in most sectors and for most business purposes, although there are some restrictions

• The lender is entitled to seek unsupported personal guarantees but is not permitted to take a direct charge over a principal private residence for a new Enterprise Finance Guarantee loan

The Enterprise Finance Guarantee is available until 31 March 2011.

2) Small Loans for Business offers loans of up to £50,000 to small and medium-sized businesses that have viable business plans but have been refused bank finance.

3) Finance for Business offers flexible finance solutions such as loans and equity finance for businesses with viable business plans that are unable to get support from commercial banks and investors.

These products are subject to specific availability and may not be available in all regions.

Solutions for Business is only available in England. Government support for business is different in Scotland, Wales and Northern Ireland.

More information business funding