What is the RLS?
The recovery loan scheme is a Government backed loan scheme designed to support access to finance for UK businesses as they look to invest and grow. RLS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance. Advances can be used for managing cash-flow, investment and growth. Must be able to demonstrate affordability.
Contact Us
Do you need help or advice accessing a loan or credit facilities.
Whilst the Recovery Loan Scheme core principles are fixed, there are many lenders, with widely differing criteria and appetite. The application process can be complex and financial data needs to be presented correctly to maximise your chances of success.
We are NACFB – affiliated and can help guide you through the application process and an understanding of your best options.
Key Features of RLS
- Facilities of £1000 to 2 Million.
- Term loans, overdrafts, asset finance, invoice finance, refinance.
- Personal guarantees may be required, at the lender’s discretion.
- Term of 3 months to 6 years.
- CBILS holders can still apply but amount of credit maybe limited.
- Government guarantee of 70% of debt to lender. ( Note: Borrower remains 100% liable for the debt. )
- Businesses need to meet the cost of interest and fees.
- Reduced initial payments under some lender schemes.
- Pricing may vary depending on the lender but will take into account benefit of the government guarantee
Eligibility Criteria
- Small to medium business with a maximum turnover of £45M
- Be UK based in its trading activity.
- Have a viable business proposition.
- Not be a business in difficulty
Information Required
This will vary depending on the lender and the type of finance sought ( Loan / Asset Finance / Invoice Finance ) but as a minimum:
- Full accounts for the last 2 years.
- Management accounts (if more than 6 months past year end)
- 3-6 months bank statements.
- Purpose of Loan.
- Brief details of how COVID-19 has affected business.
Each lender will make its own decision on whether or not to accept a proposal, and what products it makes available ( Loan / Asset Finance / Invoice Finance / Refinance ), and on what terms ( Loan Amounts / Repayment Periods / Interest Rates ) We can guide you to your best options.
