You may have seen the recent promotion around the UK Government’s Growth Guarantee Scheme
(GGS). I’ve seen it too and in principle, I think it’s a genuinely positive initiative for SMEs looking to invest
in growth and sustainability.
What I’ve Seen With Traditional High Street Banks
A lot of the major banks are actively promoting GGS-backed lending right now. However, when I look at how many traditional lenders assess energy efficiency projects, I think there’s still a major disconnect.
Most high street banks fundamentally underwrite based on historic business performance:
Previous accounts
Existing cash flow
Balance sheet strength
Historic profitability
The projected energy savings themselves are rarely treated as the core repayment mechanism. For many SMEs, that creates unnecessary barriers to investment.
Why I Believe Specialist Energy Finance Matters
In my view, energy efficiency projects should not be treated like generic borrowing.
They are investment assets with measurable returns. At Locataire Capital, we approach projects differently.
We look at:
The installer quotation
The technology being deployed
Expected energy savings Operational efficiencies
Overall project economics
We structure finance around the projected savings profile of the project, not purely the historic balance sheet.
The Green GGS Shift
One development I think is particularly interesting is the emergence of the “Green” variant of the Growth Guarantee Scheme.
This pilot specifically targets:
To me, this signals a growing recognition that green assets require specialist underwriting and sector understanding.
My Advice to Businesses
If you are considering energy efficiency upgrades under the GGS, my advice would be simple:
Don’t just compare interest rates. Compare understanding.
Ask yourself: Does the lender understand the technology? Do they understand the savings model? Can repayments align with operational benefit? Can multiple technologies sit under one facility? In my experience, that difference can determine whether a project accelerates or stalls.
Final Thoughts
I think the Growth Guarantee Scheme is a genuinely useful tool for UK SMEs. But the scheme alone is not the solution. The real value comes from how the finance is structured and whether the people arranging it truly understand energy projects and the commercial realities behind them.
The businesses that will benefit most from the green transition are not necessarily the ones with the strongest historic balance sheets. Often, they are the ones willing to invest intelligently in operational efficiency, provided the finance is structured correctly.