In short, the government guarantee is to us as a lender (not you as a borrower)
That means you’re responsible for paying back your full loan.
80% of your loan is covered by the government if you can’t repay.
The 80% guarantee was put in place to make sure businesses could borrow the money they needed, and lenders (like us) could be more confident we'd recoup our costs. But the government will only repay as a last resort and subject to their own checks.
If you’re having trouble repaying, we’ll still follow our collections process.
If we don’t find a way to work together and get you back on track, it could mean:
- we end your loan
- it affects your credit score (making it harder for you to get finance in the future)
- if you’ve signed a debenture, we can reclaim the money through your business assets (like laptops or machinery).