Launched earlier this month as a successor to the Recovery Loan Scheme, the new scheme adds asset-based lending and invoice finance to the range of supported facilities.

The GGS is a government-backed loan scheme that enables lenders to provide finance where they may not otherwise have done so, or to extend better-than-standard terms on business financing options.

The scheme supports access to a wide range of business finance products for UK businesses.

The products under the scheme that can be offered by Compass include term loans of £25,001 to £2m for business groups, across terms of up to six years; and asset finance for investments in new and used machinery or other assets, where the finance is secured primarily against the asset itself.

Also; asset-based lending (ABL) which is comprised of two or more types of finance being knitted together to achieve the overall funding package required; and invoice finance which enables applicants to access 85-90% of the value of their unpaid invoices the moment they are raised.

Compass Business Finance director Jamie Nelson said: “We are delighted that the Growth Guarantee Scheme includes the addition of asset-based lending and invoice finance to the supported facilities.

“ABL typically provides significantly higher levels of working capital than conventional methods of funding, such as bank loans and overdrafts.”

He added: “Having been accredited to provide CBILS from day one and latterly the Recovery Loan Scheme, we’ve been able to support hundreds of additional customers in acquiring the finances they’ve needed to move their businesses forward. And GGS will help us to continue supplying funds where we otherwise may not have been able to.”

Speaking to Printweek, Sarah Lees, head of marketing and communications at Compass Business Finance, added: “Businesses have faced a tough few years, and although there are many viable businesses with solid investment plans, accessing finance can, at times prove difficult. GGS is there to help businesses continue with their investment plans.

“Where it might be difficult to get hold of those funds normally, this scheme just gives lenders an extra bit of comfort in being able to support their customers and where possible, keep their rates lower than they might otherwise have been able to.”

More information on the scheme is available from the British Business Bank.