Small businesses could benefit from cheaper rate borrowing due to the new National Loan Guarantee Scheme (NLGS) that was launched in March this year by the Chancellor. This will allow small businesses more access to cheaper finance.

Up to £20 billion of Government guarantees will be provided on unsecured borrowing by participating banks, which will see borrowing at a cheaper rate. The benefits of this will then be passed on to businesses, which means when taking out a NLGS loan there will be a discount of 1% compared to rates offered by other banks outside of the scheme.