Business hit by the pandemic?
Take full advantage of the government’s newly released Recovery Loan Scheme (RLS) for COVID-19 hit businesses and get funded upto £10m to grow and thrive again during the UK’s economic recovery.
What is Recovery Loan Scheme (RLS)?
The UK government’s Recovery Loan Scheme (RLS) is a finance/loan support instrument for businesses affected in the aftermath of COVID-19 pandemic.
Businesses of any size can apply for RLS and make use of the granted funds for legitimate business purposes such as cash flow management, wages payment/payroll, growth/investment, hiring, stocking, renovation, maintenance and many more such important business activities.
Recovery Loan Scheme (RLS) is an extension and replacement to the previously released COVID-19 loan schemes – CBILS and BBLS schemes, both of which that came to an end on Mar 31, 2021. You are eligible to apply for financial assistance under the Recover Loan Scheme even if you have already borrowed money through the previously mentioned schemes.
An important timeline to keep in mind is the current tenure of RLS which is, as of now, stated to be followed between Apr 6, 2021and Jun 30, 2021. An extension may be provided in the future, but it is best to apply during this period.
What finance options are available under RLS?
Following are the key funding options that you may avail under the Recovery Loan Scheme:
Term Loans
Loan Amount: From £25,001 to £10 million per business.
Tenure of 6 years to payback the loan amount.
Invoice Finance
Loan amount: £1,000 up to £10 million per business.
Tenure of 3 years to payback the loan amount.
Business Overdrafts
Loan Amount: from £25,001 to £10 million per business.
Tenure of 6 years to payback the loan amount.
Asset Finance
Loan amount: £1,000 up to £10 million per business.
Tenure of 3 years to payback the loan amount.
Who can apply for the loan?
Following are the essential criterions to be fulfilled for loan eligibility under the RLS:
- Primary business trading for at least 12 months in the UK itself.
- Viable/feasible business operations were it not for the pandemic.
- Undergone genuine impact by the COVID-19 pandemic.
- not be in any legal collective insolvency proceedings.
Businesses of any size, whether small or large, can apply and avail loan benefits if and only if they meet the above criteria laid down by the UK government.
Make sure to keep important pertaining documents to Management accounts,
Business plan, Historic accounts, Assets details up to the mark for any scrutiny. Businesses may be required to go under various security checks for standard credit and fraud, Anti-money Laundering and KYCs by the financial institutions/lenders to assess eligibility and payback guarantee for the corresponding loan tenure.