The scheme is designed to help businesses affected by COVID-19 access funding for managing cashflow, investment, and growth, as well as to improve the funding terms on offer. However, if a commercial loan or funding on better terms is available, without requiring the guarantee provided by the RLS, that will be offered.
Offering a number of similar features to the earlier COVID-19 schemes, the RLS also includes other benefits, for example, the cap on borrowing has been extended from £5 million to £10 million per borrower with the amount per group increased to £30 million. Whilst the lower limit for asset and invoice finance has been reduced to £1,000, and £25,001 for term loans.
Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme, subject to affordability.
Jamie Nelson, Compass Business Finance directed stated: “Our accreditation under the Recovery Loan Scheme will enable us to provide more businesses with the funding they need to move forward, whether we’re helping them restructure existing debts or providing the funding for much needed investments.
“We are now better positioned to assist both larger groups of companies who previously only had access to CLBILS and those smaller companies who took Bounce Backs Loans but would benefit from further support.”
Compass Business Finance has a longstanding relationship with the British Business Bank. The Recovery Loan Scheme is scheduled to run until 31st December 2021; however, this will be subject to review.
Compass Business Finance www.compassbusinessfinance.co.uk/recovery-loan-scheme
