Business finance backed by the recovery loan scheme
Government backed loans come under the recovery loan scheme
The latest version of the government back business loans is called the Recovery Loan Scheme (RLS), which is on offer to help UK business recover and grow after recent challenges.
There are many accredited lenders who First Oak Capital can introduce you to and RLS is used to back various different finance products including term loans, asset finance and invoice finance facilities.
It can be used to support finance facilities of up to £2million and even if you have previously taken advantage of a CBILS, CLBILS or BBLS this need not prevent you from accessing RLS.
The scheme provides lenders with a government backed guarantee which covers 70% of the outstanding balance after it has completed its normal debt recovery process.
The borrower is still liable for the debt and lenders are still required to carry out their usual credit checks and due diligence, however the additional security provided by the government may well encourage lenders to support you and at a better interest rate.
This is lender specific and we will work for you to find the best rate. Generally RLS backed loans are very reasonably priced as the lender benefits from the security provided by the government.
Unlike previous iterations of RLS, there is no requirement to show that your business has been adversely affected by COVID. It is now focused helping business with growth and recovery.
RLS is only available to UK businesses with a turnover of up to £45m.
This is for the lender to decide, in line with their usual lending practices and will depend on their opinion on the risk involved.
Yes, if still affordable for your business a facility backed by the RLS can be used to pay off another loan if you feel that it will reduce monthly payments or save you interest.
Simply contact First Oak Capital to discuss your requirements and current situation and leave the rest to us.
Repayments will generally start one month after taking out the facility