There are different sources of borrowing when starting or growing a business. Some lenders may require a loan guarantee before they will give you a loan to ensure they get their money back even if the business is not successful.

A loan is borrowing for a set period of time with an agreed repayment schedule, including interest. Loans are most suitable for paying for business assets, like vehicles and buildings, or for start up capital.

Banks and building societies are the main source of business loans. Make sure you shop around and get the best deal. To compare business accounts on the British Bankers association website visit:

Aimed at small and medium sized enterprises on Merseyside. The MSIF Small Firms Loan Fund provides loans of between £3000 and £100,000 usually as part of a package in conjunction with financial institutions and for not more than 50% of the total funding requirement.

Loans from £100,000 to £1 million, which involve MSIF taking an equity option (where they take a shareholder stake in the business) or a premium where a fee is paid if the company is sold or floats on the stockmarket.

The SFLGS is a joint venture between the Department of Trade and Industry (DTI) and a number of approved lenders - banks or other financial institutions. The SFLGS aims to help businesses who have viable business plans, but may not have sufficient assets to offer as security. It helps overcome this risk to lenders by providing a government guarantee of 75% against default on any loan.