EFG Loan - Borrowed 60k over 10 yrs paying back £15K p.a??

Tonyr

As the title says, i'm purchasing an existing insurance brokerage business that i've worked for for 10 years and is always profitable. I sold my house (split from the ex) and am now renting a flat. I have £40K in the bank and the seller wants £100K deposit from a £225k sale price. (the balance me and him will come to an arrangement). It has been an absolute nightmare. The company banks with barclays, but barclays wont help..i've been everywhere until Lloyds said they'll help. I've given them a business plan, cashflow forecasts and they've agreed to an EFG loan. They've agreed to loan me the £60K, over 10 years at £15K per annum. That means i'll be paying back £150K !!!! Is that right? Seems an awful lot. I thought people were supposed to be helping small businesses? Thanks - Tony

Tixy

Well it works out as an APR of 22%. Which is expensive for an EFG loan. But the interest rate on EFGS is set by the individual banks for each applicant.

Presumably it doesn't include any repayment holiday at the start of the loan or anything? Does the quote actually include an APR and does that come out at the above figure.

Does the £15k include the payment of the 2% premium (which is the quarterly payment on an EFG that most of the debt is guaranteed by the government?)