Recovery Loan scheme

Recovery Loan Scheme

The great news is the Recovery Loan Scheme is still available to businesses, just updated. We’ve seen a couple more lenders join the scheme, giving you greater opportunity to access it. 

The other great news is that the Recovery Loan Scheme is now available alongside other business loans and previous government schemes such as CLBILS, BBLS or RLS that were taken out.

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) is a government backed programme to support and aid access to finance for UK businesses. 

Key features include:

Loan size: £25,001 to £2m, though for most unsecured lenders this goes up to £250,000. 

Product available under the scheme: Unsecured business loans, asset finance and invoice finance. 

Term: we’re seeing loans and facilities be available up to six-year term. So invoice finance products under RLS are maximum 3 years. 

Pricing & interest rates: This will vary depending on the lenders. They still take into account the benefits of the Government guarantee but it will also depend on the applying business’ circumstances. Sadly, it’s not possible to give a clear and accurate rate until your business as been assessed. 

Personal Guarantee: Under the Recovery Loan Scheme the lenders can take a personal guarantee, it’s their discretion. We are seeing that the guarantees are limited to the amount the government isn’t guaranteeing – i.e. 25% of the balance. However this is not always the case. 

Higher approval: The scheme means lenders are likely to be willing to offer more and over a lo

nger period, possibly at better rates they are still going to be making their decision based on their lending criteria – the government guarantee is only there as a last resort for the lender and only if all other recovery attempts have been made.

Borrower 100% liable: The scheme means the government provides the lender with a 70% guarantee against the outstanding balance of the loan or facility – once the lender has completed its normal recovery process. So, the lender will still be reviewing and underwriting the application under their own criteria and the borrower will always remain 100% liable for the debt. 

Are you eligible for the Recovery Loan Scheme?

Turnover limit: Have a turnover of up to £45 million.

UK Based: You must be carrying out trading activity in the UK.

Minimum trading period: Most lenders require a minimum of 2 years trading.

Loan purpose: Recovery Loan Scheme funding must be used for business purposes such as working capital, investment, growth.

Business in difficulty: The borrower must NOT be a business in difficulty, have ongoing insolvency proceedings. This scheme is not there to help businesses that are failing or in a downward trend.

How can you apply:

Rise Funding has direct access to the Recovery Loan Scheme providers. We will help navigate through the process and make sure all areas are covered, giving your business the best chance of being approved at the best rates and terms available. Simply contact us via the form below.

We'll help you find the funding your business needs

We will do the heavy lifting for you and what’s more:

  • We’ll manage your application
  • Your credit score is not affected by apply with us
  • You will not pay more than going direct