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Government Recovery Loan Scheme

Updated: Jun 17, 2021

Ultimate Guide


Following the coronavirus pandemic, the government introduced the Recovery Loan Scheme (RLS) on the 6th April 2021 to help support all sizes of business to access funding to incentivise recovery and growth.


Short for time? Read the infographic below:


recovery loan scheme to help businesses of all sizes access funding to support their recovery following the pandemic. Use RLS for invoice finance, asset finance, term loans and overdrafts.

Want the ultimate guide? Keep reading...


What is the recovery loan scheme?


The RLS is set to run to the 31st of December 2021 and can be used for any purpose you see fit for your business including investment in assets, marketing and as a cash flow solution.


Your business's finance will be assessed to see if you can afford the debt and the stronger your financial profile the more competitive terms you will be offered.


Who is eligible for the scheme?


Your UK trading business must have been adversely impacted by the pandemic (which I believe almost every business will be able to argue) and still be viable had it not been for the pandemic. Your business will must also not be undergoing collective insolvency proceedings.


You are still eligible if you have already received other government coronavirus support loans, however, some lenders have set a maximum amount available, made up of the total you have borrowed against all the schemes:

  1. Coronavirus Business Interruption Loan Scheme (CBILS)

  2. Coronavirus Large Business Interruption Loan Scheme (CLBILS)

  3. Bounce Back Loan Scheme (BBLS)

  4. Recovery Loan Scheme (RLS)


How it works


Types of finance available

  • Invoice Finance (Find out more here)

  • Asset Finance (Find out more here)

  • Term Loan

  • Overdraft facility


Who's giving the finance?


Lender's are able to sign up to provide through the recovery loan scheme and become accredited by the British Business Bank. High street banks were some of the first to offer funding for the RLS but other lender's have started to become available and seem to have slightly more appetite. To can see a full list of lenders available here.


What can I get?

  • Invoice or asset finance solutions from £1000 to £10 million

  • Term loans or overdrafts from £25,001 to £10 million


For how long?


The length of the facility is dependant on the type of finance solution you are adopting:

  • up to 6 years for loans and asset finance facilities

  • up to 3 years for overdrafts and invoice finance facilities


Security and guarantee's


The loan is secured 80% by the government for the lender.


How do I apply?


Contact us today here or call us on 01392 241669


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