Recovery Loan Scheme
As we say goodbye to CBILS and BBLS, the Recovery Loan Scheme (RLS) is here to smooth the transition back to the new normal, which will run until the 31st December.
As explained by The British Business Bank, the scheme hopes to continue to support businesses affected by the pandemic and can be used for any legitimate business purpose, including managing cash flow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.
Businesses who have already taken out a CBILS, CLBILS or BBLS facility will be able to access the Recovery Loan Scheme, although the maximum you are allowed to borrow will depend on your lender’s assessment and scheme requirements.
Key features of the scheme:
Up to £10m facilities per business
- The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
- There will be no turnover restriction for businesses accessing the scheme.
- Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.
Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
Interest and fees to be paid by the business from the outset
Businesses will be required to meet the costs of interest payments and any fees associated with the facility.
Credit checks for all applicants
Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.
How do I apply?
Getting your business back on track after the challenges of the pandemic is no easy task. The good news is that we offer access to the Recovery Loan Scheme (RLS) – a way to borrow up to £10 million in extra finance to help you fund your recovery.
We can help you apply for a term loan, overdraft, invoice finance, or asset finance, bringing you a new route to extra funding for viable businesses that have been affected by Covid.
The RLS will be open for applications from qualifying businesses until 31 December 2021. For more information on the scheme and eligibility, download this recovery loan data sheet from our partners at Capitalise.
Our finance partnership with Capitalise gives us access to over 100 lenders. The benefit of the Capitalise platform is that their matching service will identify all products your business is eligible for, including the Recovery Loan Scheme Lenders.
If you are interested in approaching funding through us, please fill in this form and we will kick start the process through the Capitalise platform.