Recovery loan scheme insights

Recovery loan scheme insights


With businesses across the UK slowly finding their metaphorical feet, there has never been a better time to look into the latest government funded Recovery Loan Scheme (RLS).

The Recovery Loan Scheme supports access to loans and other forms of finance for UK businesses, of all sizes, so they can recover from the disruption caused by the Covid-19 pandemic.

Our team of financial specialists can work with you and offer a helping hand to get your business onto a road to recovery.

What is the Recovery Loan Scheme?

The RLS, which replaced the government’s Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS), is solely to assist businesses impacted by the pandemic and can be used in areas, such as managing cash flow, investment and growth.

Up to £10 million is available per business. The actual amount offered and terms are at the discretion of participating lenders. Businesses can apply for a £25,000 loan up to the £10 million mark, and personal guarantees are not required for loans under £250,000.

You can choose from a variety of financial products, such as compromising term loans, overdrafts, asset finance, as well as invoice finance. Term loans and asset finance are accessible for six years and invoice finance can be availed for a period of three years.

The government guarantees 80% of the finance to the lenders and the borrower is always 100% liable for the debt. There is no debt or fee-free period, and if your business qualifies for a Recovery Scheme Loan, payments can start immediately.

Businesses from all sectors are welcome to apply for the RLS, the only exception being banks, building societies, brokers, reinsurers, as well as public sector organisations and schools.

When it comes to the financiers, some may set their own standards, which may vary to some extent from the government’s conditions. For example, Starling Bank and Funding Circle are proposing RSL loans of £350,000. In order to proceed with these moneylenders, it is understood your business must present trading records for a minimum of two years and show gross revenue of £100,000 in your 2019 financial records. Other lenders may require you to show management accounts, your business plan and details of assets.

To apply for the RLS, you must meet the following criteria.

  • Your business trades in the UK.
  • Your business has been impacted by the Covid-19 pandemic.
  • Your business would be viable were it not for the pandemic.
  • The loan is for business purposes only.

How to apply for the RLS:

  • Follow the simple steps online to apply.
  • Review your feedback.
  • If approved, your loan is funded and deposited straight into your account.

Our team of financial experts and business advisors are here to help you! For more information, simply drop us an email –

Close Menu