Posted: 28 / 04 / 2021

April marked a turning point in the pandemic for many business owners who are opening their doors to welcome back customers for the first time in months; especially businesses in the retail, hospitality, leisure & beauty sectors.

Whether you are in those industries or not, the ripple effect of having the economy opening up should be very positive for businesses across the board!

However, with a surge in activity and sales, comes the need for additional cash flow. Funding your staff returning, replenishing stock or just the simple working capital time delays from paying bills to receiving payment will all be reasons that a business will need to look at finance to jump-start their business.

This is where the Recovery Loan Scheme (RLS) can be useful for business owners.

This differs from the CBILS/BBL schemes it replaces, in that the amount applied isn’t capped by turnover; the lender will look at a facility on its own merits. You can also have an RLS facility alongside an existing BBL/CBILS.

The key features of the Recovery Loan Scheme.

  • Facilities from £1,000 to £10m
  • Terms of up to 6 years
  • Includes loans, overdrafts, invoice finance and asset finance
  • Can be used for ANY business purpose
  • No personal guarantees are taken on facilities of up to £250,000, and a borrower’s principal private residence cannot be taken as security
  • Interest rates and fees may vary between lenders
  • The government will offer an 80% guarantee to the lender

Of the Recovery Loan Scheme lenders available, Partner and Director of Sedulo Funding Solutions, Leyton Jeffs, says:

“At the time of writing, there are a small number of lenders accredited, but by the end of this month we expect to see many many more.

Each lender will have their own criteria to decide whether they are prepared to lend, similar to any commercial facility, but will have the advantage of the government guarantee, hopefully giving them more comfort to lend to businesses that have struggled through Coronavirus.”

And for a business owner’s next steps? Leyton recommends looking ahead to your next 12 months of business. He adds:

“As we found with CBILS, each lender has a specific pot of money and when it’s gone, it’s gone. It’s therefore imperative that you act quickly, so a lot of our current conversations with clients are about understanding their finance requirements over the next 12 months before the pot runs dry.

If any business owner out there needs help with this, get in touch. Whether it’s a telephone call, Zoom or face-to-face meeting, we offer a comprehensive, free and no-obligation review of a business’ needs, so there’s nothing to lose.”



Get help with the Recovery Loan Scheme ➞