South of scotland loans Scheme

2007-03-08 10:33:40

( Automobiles )



In the south of Scotland there is a scotland loans scheme which supports projects needing public sector support and which can bring definite economic benefit to the area. So there is no longer an urgent need to compare loan rates – just go to south of scotland loans.

This scheme is available to small to medium enterprises located in the south. You can apply for a couple of thousand, or much larger amounts, which you can repay within a good few years.

Don’t’ worry too much about shopping around for the best bank loan rates – this scheme provides “gap” funding so that your business can grow. But you need to show them that you have unsuccessfully tried to get all available conventional funding.

Interest rates for your south of scotland loans are reviewed each year and the rate is set according to the current base rate of an important bank. The rate will remain consistent for a 6 month period, after which it will be reviewed.

The interest rate of your scotland loans will be set according to whatever rate prevails when the legal offer of the loan is made, and will remain consistent for the period of the loan.

Interest is calculated according to a reducing balance, and you can make your repayments monthly by direct debit.

If necessary you may be given a capital repayment holiday (up to 6 months).

The support you get from the Public Sector (including the loan) must not make up more than half of the project. It is essential that you should have match funding (either from yourself or a bank).

For loans under a certain amount they don’t require security. For loans above a certain amount, security will be taken at the applicant’s cost.

You can pay back the loan early with a month’s notice given. Interest will be calculated accordingly.

For you to be eligible the business must be or have an operating base in the south. You can also apply if you wish to relocate to this area. All jobs must be created in these areas.

If, however, you are in the business of consumer retail, primary agriculture or financial and professional services, you are not eligible.

Your business must have less than a certain amount of employees and a limited annual turnover or balance sheet total.

You are eligible if you have a partnership, be a limited company or a sole trader. You must be 18 years or older.

The loans may be used for capital expenditure or working capital, but not to purchase property.

A typical business that has benefited from the scotland loans scheme is a fine art foundry and design studio. They are one of the two foundries of this nature in Scotland and produce bronze casting using a specialized method.

The scotland loans helped them make a public viewing gallery so that visitors could watch the sculptors at work. Thanks to scotland loans, the studio has championed local art.


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