Recovery Loan Scheme (RLS) – The Aftersales Network
Helping to support your business during coronavirus!
Get the financial help backing you need to help your business cope with coronavirus (COVID-19) through this government-backed scheme.
This scheme is designed to support UK based small and medium-sized businesses by giving access to finance as they recover from the economic impact of the COVID-19 pandemic.
Loans up to £10 million. There is no turnover restriction under the Recovery Loan Scheme but the maximum loan amount is now capped at £10m.
Flexible terms available Spread repayments of your loan up to 6 years.
Finance can be used for any legitimate business purpose, such as managing cash flow, investment and growth.
What isThe Recovery Loan Scheme (RLS)?
The Recovery Loan Scheme (RLS) is a government scheme to help UK businesses affected by coronavirus to access finance. Finance can be used for any legitimate business purpose, such as managing cash flow, investment and growth. The Recovery Loan Scheme (RLS) began on 6th April 2021 and is scheduled to run until the 31st December 2021, subject to review.
Finance of up to £10 million
The maximum value of a facility provided under the scheme is £10 million, available on repayment terms of up to six years.
Guarantee to the lender to encourage them to lend
The scheme provides the lender with a government-backed, partial guarantee against the outstanding balance of the finance. The borrower remains 100% liable for the debt.
Finance terms
For term loans and asset finance facilities: up to six years. For overdrafts and invoice finance facilities: up to three years.
Security
Insufficient security is no longer a condition to access the scheme. For all facilities, including those over £250,000, The Recovery Loan Scheme (RLS) can now support lending to smaller businesses even where a lender considers there to be sufficient security. No personal guarantees for facilities under £250,000. Personal guarantees may still be required, at a lender’s discretion, for facilities above £250,000, but they exclude the Principal Private Residence (PPR) and recoveries under these are capped at a maximum of 20% of the outstanding balance of The Recovery Loan Scheme (RLS) facility after the proceeds of business assets have been applied.
No guarantee fees for businesses
There are no guarantee fees for SMEs. Lenders pay a fee to access the scheme.
Apply for your Recovery Loan Scheme (RLS) now…
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