Loans for working capital, capital expenditure, growth funding, expansion in international markets and marketing investment.

The Scottish Loan Scheme can provide loan funding of £250,000 to £2 million to growth-focused Scottish companies that have a viable business plan and a clear ability to repay the debt.

Loans can be used for a variety of purposes, including:

• Working capital
• Capital expenditure
• Growth funding
• International expansion
• Marketing investment

Eligibility

To be eligible for investment from the Scottish Loan Scheme:

• Your business must be based in Scotland or ready to locate to Scotland (and located in Scotland before any loan funds are made available)
• You must have a viable business plan which demonstrates you can pay back the loan
• You must demonstrate that you have tried to get funding from existing funders or there is justifiable reason why you have not
• Your company should have 2 years’ trading history with a minimum £250k turnover and be profitable (or projecting profitability within the next 12 months)
• The loan funding needs to secure or maintain economic impact in Scotland commensurate with the level of funding being sought
• Your business must support fair work practices, including paying support the Living Wage, with no inappropriate use of zero hours contracts or exploitative working patterns
• Restricted sectors include banking and insurance and sub-prime lending, gambling, adult entertainment, activities with adverse impact on human rights, tobacco and locally traded services

Terms & Conditions

Application Process

Step 1 – Make an initial enquiry

Complete the initial enquiry form and send it to scottishloanscheme@scotent.co.uk. We may arrange a meeting with you to discuss your plans further, and how much you may be eligible for.

Step 2 – Submit a full application

Qualifying companies will be required to submit the following:

• Full application form
• Business plan
• Two years of historical annual accounts
• Three years of forecasts (to include P&L, balance sheet and cash flow forecasts)
• Details of current borrowing

The business plan and financial forecasts need to clearly demonstrate the company is viable and able to repay the debt within sufficient headroom. Loan applications will be subject to credit checks of directors and shareholders with over 20% shareholding. Any existing debt will be taken into account when assessing loan affordability.

Step 3 – Report on progress

If your loan is approved, on an ongoing basis, you’ll need to provide us with management accounts (P&L, balance sheet and cash flow), annual budgets and annual accounts. High-level information on the economic impact derived from the funding will also be required.