How the Growth Guarantee Scheme works
The Growth Guarantee Scheme (GGS) is a UK government scheme, run by the British Business Bank, that helps smaller businesses get finance. Accredited lenders offer term loans, asset finance, overdrafts, invoice finance and asset-based lending, and the government guarantees 70% of each facility to the lender.
The guarantee protects the lender, not the borrower. The business must repay 100% of the debt, so this calculator never reduces your costs for it. The lender decides whether to lend and sets the interest rate and fees. Lenders may take personal guarantees, and the scheme is scheduled to run until 31 March 2030.
Worked example
A business has a £50,000 invoice and the provider advances 85%, so £42,500 up front and £7,500 held back. A 6% yearly discount rate for 60 days costs £419.18, a 1% service fee costs £500, so the total cost is £919.18.
When the customer pays, the net proceeds are £50,000 − £919.18 = £49,080.82. The cost is 1.84% of the invoice, or about 13.16% a year on the cash advanced.
Advance versus net proceeds
The initial advance is not the whole story. The part held back is not extra profit or an unconditional payment: it is released after your customer pays, less charges, and the agreement can make other adjustments.
Providers price differently, for example a discount on the advance, a service fee on the invoice or fixed fees. Enter the figures from your agreement and treat the result as an illustration.
Under GGS, invoice finance facilities are available for up to three years and start from £1,000.
Borrowing limits and recent changes
The published limit is generally £2 million per business group, counting GGS and Recovery Loan Scheme borrowing since 1 August 2022. Term loans and overdrafts start at £25,001, and asset finance, invoice finance and asset-based lending from £1,000. In Northern Ireland, borrowers within the scope of the Windsor Framework can borrow up to £1 million in most sectors, £285,000 in primary agriculture and £170,000 in fisheries and aquaculture. Being in Northern Ireland does not by itself set the limit, and your lender confirms which applies. England, Scotland and Wales follow the same UK-wide limits.
On 12 July 2026 the Chancellor announced that GGS will support facility terms of up to ten years for term loans and asset finance, that the annual turnover limit rises from £45 million to £54 million, and £6.5 billion more lending over four years. The British Business Bank is working with accredited lenders to bring these in and says the scheme remains fully operational under its existing terms, so not every lender offers them yet.
How this calculator works
The advance is invoice × advance rate. The discount charge is advance × yearly rate × days ÷ 365, the service fee is the invoice × the fee percentage, and other fees are added. Net proceeds are the invoice less all charges. The yearly cost is total cost ÷ advance × 365 ÷ days.
It does not model reserves released at different times, chargebacks, bad debts or tiered pricing. This is an independent tool, not run or endorsed by the British Business Bank or the UK government, and it does not tell you whether you will be approved. To find a lender, use the British Business Bank's official list of accredited lenders, which you can filter by region and type of finance.
For invoice finance that isn't under the scheme, use the invoice finance calculator.
If you want to borrow against stock and equipment as well, see the GGS asset-based lending calculator.
Inputs for the GGS invoice finance calculator
Where is the business based?
England, Scotland and Wales share the same limits. Choose Northern Ireland to apply its separate limits.
Northern Ireland borrower type
Shown for Northern Ireland only. The limit depends on whether the borrower falls within the Windsor Framework rules and on its sector.
Invoice value
The value of the eligible invoice you want to finance.
Existing GGS and RLS borrowing
GGS or Recovery Loan Scheme borrowing your business group already has. It counts towards the limit, so only the headroom is left.
Advance rate
The share of the invoice the provider pays you up front. Providers often advance 80 to 90%.
Discount rate (yearly)
The yearly rate charged on the cash advanced, for the days until your customer pays.
Days until your customer pays
How long the invoice stays unpaid, from 1 to 365.
Service fee
A share of the invoice value charged for running the facility.
Other fixed fees
Any set-up or per-invoice fee, in pounds.
CALCULATOR QUESTIONS
GGS invoice finance calculator questions
What is the Growth Guarantee Scheme?
A UK government-backed scheme where the government guarantees 70% of a business facility to the lender. The British Business Bank runs it.
Do I repay the guaranteed part?
Yes. The business is liable for the whole debt. The guarantee protects the lender, so it does not reduce what you owe.
Is the held-back part mine?
It is released after your customer pays, less charges, as your agreement sets out. It is not extra profit.
Why does the cost rise when customers pay later?
The discount charge grows with the days the cash is advanced, so slower payment costs more.
Who sets the interest rate?
The lender. Rates and fees vary, so compare offers from accredited lenders.
Does the calculator tell me if I'll be approved?
No. It shows how an amount sits against the published scheme limits. Accredited lenders decide whether to lend.
How do I apply?
Through an accredited lender. The British Business Bank website lists them and lets you filter by region and type of finance.