How to Apply for Business Recovery Loan Scheme?
Are you aware that there are just 3 months left to capitalise on potentially transformative government backed finance? The Recovery Loan Scheme ends in June 2022 and for business owners, this window presents an opportunity to secure debt financing at historically low levels and with no requirements for personal guarantees.
What is Recovery Loan Scheme?
The Recovery Loan Scheme gives business owners the opportunity to borrow up to £250,000 of government backed money from UK lenders to use and spend in your business as you wish. The business case is incredibly strong – it provides an opportunity to secure very cheap financing to achieve the next stage of growth in your business including hiring staff, for working capital or cash flow, making an acquisition or even buying a new premises.
The great thing about this incentive is that business owners and directors do not have to give a personal guarantee. The RLS is covered by the UK government and the lender up to £250,000. The key terms to be aware of are:
Up to £250,000 of debt available without Personal Guarantees.
The loan amount can be up to a maximum of 25% of an applicant’s turnover - so for revenue generating businesses only.
Monthly repayments made over terms of up to 6 years.
Low interest rates of 5-11% (Dependent on the strength of your business).
Multiple facilities can be arranged for up to 25% of turnover.
Why is it so good?
The opportunity here is that you can have cheap government backed money to grow your business until June 2022 without having to give a personal guarantee, instead using the governments backing to grow your business. The UK government wants businesses to grow and utilise the funds - with businesses flourishing and confidence returning in bundles, the UK economy is getting firmly back to business and the opportunity is still there for business owners to capitalise on.
Why was this introduced and why is it available to UK businesses?
The reason the RLS is available is as a way of the Government to encourage growth in the economy. If businesses grow, hire more staff, and expand with higher turnover and greater profits this produces a healthy economy. This is exactly the reason the RLS was introduced, governments are subsidising lenders by taking the risk on themselves, reducing interest rates to encourage business owners to borrow money and grow their businesses.
How can we get the RLS?
Dragon Argent have partnered with specialist brokers The Commercial City Group, who specialise in making RLS applications. We’ll work with you to gather the required information and put you in touch with our partner to make the application. The process is simple; you’ll need up to date financials and then we can apply on your behalf guaranteeing the best rates and terms on the market.
If you’d like to speak to us about applying for a Recovery Loan before the scheme ends in June 2022, please get in touch by scheduling a call.
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