Who we lend to
BEDF lends to all types of people and businesses with a viable business proposition if they cannot raise the required funds from traditional sources such as banks. We consider applications from new and existing businesses:
- You must be 18 years or over and be responsible for running the business
- You will employ less than 25 people
- Your business will be based and operate within the BEDF area and you will probably live in the area too. This covers the whole of Bristol, South Gloucestershire, Bath & North East Somerset and North Somerset. Click here to see the map on the How to apply page
- You must provide written evidence that the business finance you need cannot be sourced elsewhere. Typically this is a letter from the business banking section of a high street bank
- We lend to sole traders, partnerships, limited companies and most other business forms
Exclusions
- BEDF will consider all types of business except religious and political proposals or any business activity which may offend public taste.
- We cannot consider an expansion loan to any business established for less than 12 months or any business unable to produce suitable trading accounts for the previous year
How much can I borrow?
Types of loans
- Start up – you can borrow a maximum of £7,500 over 3 years
- Expansion & Growth – you can borrow a maximum of £15,000 over 3 years
- Fast Track – you can borrow a maximum of £1,500 paid back over 1year to 18 months
- Social Enterprise Research and Development – you can borrow a maximum of £5,000 over 3 years
What it costs
- We charge interest at a favourable rate, linked to the current Bank of England rate
- Interest is fixed at the beginning and for the duration of the loan
- Interest only payments for 3 months except on Fast Track loans
- Currently there is no setup fee or administration charge
- Repayment is by monthly standing order which includes capital and interest
- You can pay back your loan early without excessive penalties
What loans can be used for
- To purchase capital items, tools and equipment
- To provide working capital for start-up businesses
- To buy stock and raw materials
- To secure premises and re-furbish them
- To pay for marketing, advertising and promotion
- For other activities and items essential for the start-up or expansion of the business
- We are reluctant to provide vehicle finance – please check with the Fund Managers
Working with other lenders
- BEDF loans can be offered as part of a total funding package to include bank loans, overdrafts, personal or third party capital, and finance from other loan schemes. We will co-lend with the bank if they cannot offer all you need
- As partners in a group of business loan funds across the South West, we may be able to refer you to other lenders if you need more finance than we can offer