Skip to main content

Growing

Growth Guarantee Scheme lenders: what to do when your bank says no

Your bank said no? Other Growth Guarantee Scheme lenders decide for themselves. How to find one, what changes when you switch, and how to stay safe.

Reading time 5 min read
Category Business guides
Written by The bizbritain team
If your bank will not give you a Growth Guarantee Scheme loan, you can apply to other Growth Guarantee Scheme lenders. Each accredited lender makes its own decision. You do not need to be an existing customer. So a no from one bank is not a no from the scheme.
56accredited lenders on the official list on 19 October 2026
70%of the loan is guaranteed to the lender, not to you
£2mthe most a business group can borrow in most of the UK
10 yearsthe longest term for term loans and asset finance
These figures come from the British Business Bank, which runs the scheme for the government.

Section 01

Why one lender's no is not the scheme's no

The British Business Bank does not lend the money itself. It gives accredited lenders a 70% guarantee on the loan. The lender still makes every decision.
According to the British Business Bank, decisions are "fully delegated" to the accredited lenders. Each one runs its own credit and fraud checks. Each one also sets its own appetite for sectors, sizes and types of finance.
There is one more rule worth knowing. Lenders should only use the scheme if they cannot offer the same terms without the guarantee. So your bank may offer you an ordinary loan instead, or nothing at all.
Why might your bank say no? It may not offer the product you need under the scheme. It may not lend to your sector or in your region. Or it may not think the repayments fit your cash flow.

Section 02

How to find other Growth Guarantee Scheme lenders

  1. Start with the official list

    The British Business Bank publishes the current accredited lenders on its website. The list runs from high-street and challenger banks to asset finance firms and specialist local lenders.

  2. Filter by region and product

    Not every accredited lender offers every type of finance. The list lets you filter by where you trade and by what you need, such as a term loan, an overdraft, asset finance or invoice finance.

  3. You do not need to bank with them

    The scheme is open to any eligible business. You can apply to a lender you have never used before.

  4. Ask your bank why it said no

    The reason tells you where to go next. A no on sector points to a different lender. A no on affordability may mean a smaller amount or a longer term.

  5. Check the basic rules first

    Your business must trade in the UK, have a viable plan and not be in financial difficulty. Group turnover must be £54m or less. You must also be able to afford the repayments.

Section 03

What changes when you switch lender

The scheme rules stay the same. The deal you are offered can change a lot.
  • The rate and fees. Each lender sets its own price. It takes the guarantee into account, but prices still vary.
  • Personal guarantees. A lender may ask for one if that is its normal practice. It cannot take your main home as security under the scheme.
  • The term. Term loans and asset finance can run for up to 10 years. Overdrafts and invoice finance run for up to three years.
  • The type of finance. A different lender may suggest asset finance or invoice finance under the scheme instead of a term loan.
Myth 01

“If it is government-backed, the government pays if I cannot”

It does not. The 70% guarantee protects the lender after it has tried to recover the debt. Your business stays liable for the whole loan.

Borrow only what the business can repay.

Section 04

How to apply for the Growth Guarantee Scheme safely

You apply through an accredited lender, either direct or through a broker. The British Business Bank warns that a scheme loan must always come from an accredited lender. That applies even when an adviser or broker arranges it.
So check the lender's name against the official list before you sign anything. Be wary of anyone who says they can get you a scheme loan without naming the lender.
A broker can look at the deal across a wider range of lenders. bizbritain is a British Business Bank Business Support Partner, and we work with lenders accredited for the scheme. On advisory deals we take no commission from lenders, so our advice is not tied to any one of them. Our page on growth finance explains how it works.
For the full scheme rules, read our guide to the Growth Guarantee Scheme's expanded rules. If you are unsure how much to ask for, see how lenders decide how much your business can borrow.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.

Back to business guides

Read the guide · ready to talk?

Got a question the guide didn’t answer? Talk to an advisor.

We’ve arranged growth finance for thousands of British businesses. If you’ve read the guide and you want to see what £25k to £10m from 100+ lenders could do for yours, our advisors are on the phone now.

Business growth loans Email the team