The Recovery Loan Scheme?
The financial measures introduced and rolled out by the government as a response to the pandemic have been a huge lifeline to many. From supply chain issues to decreased demand, business owners have certainly had a lot to deal with. The latest financial help available, the Recovery Loan Scheme (RLS), was announced in the Budget as a successor to the Coronavirus Business Interruption Loan Scheme (CBILS).
Radar has been delighted to support so many businesses through CBILS Loans and CBILS Asset Finance agreements. This, while maintaining standard finance offerings for any assets, leasing and contract hire. We are able to do the same thing through RLS through through partners on our independent panel of lenders. Importantly you don't have to settle any BBL's or CBILS Loans.
What is the RLS?
The main thing to keep in mind is that RLS is designed to support viable businesses through a meaningful recovery.
Here are some of the main things to know about RLS:
- If you had a Bounce Back Loans and CBILS loans these don't have to be settled as part of any new RLS agreement. Funders will take overall exposure into account though when considering an application.
- No max turnover criteria as with CBILS.
- You can borrow between £25,001 and £10 million via Loans or Asset Finance
- Amounts up to £250k do not require any Personal Guarantees
- Higher amounts may require part Guarantees or Security
- Asset Finance Max Lend - £10m
- Loan Max Lend - £350k
- Repayment periods up to 6 years
- Unlike CBILS you will have to pay Fees and Interest
- However some funders offer Interest only for 12 months to assist cash flow
- Like CBILS its 80% Government Backed - an incentive for lenders to lend
- As the borrower you remain responsible for repaying the loan
- Your business needs to be UK Based
- Subject to formal approval
Please get in touch for more information on 01335 361402 - email@example.com
If a Recovery Loan Scheme isn’t for you – here at Radar can also assist with a wide range of business finance options for any Asset Purchases, tangible or not, Contract Hire, Loans, Vehicle Supply, etc