Recovery Loan Scheme

The fantastic new government backed funding arrangement ‘Recovery Loan Scheme’ is set to launch on 6th April 2021. The scheme will seek to ensure businesses of any size can continue to access loans and other kinds of finance from £25,000 to £10 million. If your business was rejected the CBILS or Bounce Back Loans or did in fact get a previous loan facility.. you can still apply!

Register your interest now so as soon as the scheme goes live you can gain access to the funds as quickly as possible.

Recovery Loan Scheme Key Features:

  • Up to £10m facility:

    Term loans and overdrafts will be available between £25,001 and £10 million per business.

  • No Turnover Limit:

    No turnover restrictions for businesses wanting to access the scheme.

  • Finance Options:

    A range of finance different finance options are available from asset finance, asset refinance, term loans, overdrafts and invoice finance facilities.

  • No Personal Guarentees

    No personal guarantees will be taken on facilities up to £250,000.

  • Interest and fees:

    Businesses will be required to pay the interest and fees from the outset of the agreement.

  • Access to multiple schemes:

    Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.

  • Credit Checks

    Systems Finance will undertake credit and fraud checks for all applicants. Lenders may overlook concerns over short to medium term performance as a result of the pandemic.

NB: It’s crucial given the expected high demand for loans, that we work closely with our SME clients to build complete & supportive applications to ensure they get approved promptly & effectively.

Once received, the finance can be used for any legitimate business purpose, including growth and investment. The government will guarantee 80% of the finance to the lender – ensuring they continue to have the confidence to lend to businesses.

Details of The Loan

  • The amount you would like to borrow.
  • What the money is for – the lender will check that it’s a suitable business purpose and the right type of finance for your needs.
  • The period over which you will make the repayments – the lender will assess whether the loan is affordable for you.
  • Show you have been impacted by the coronavirus pandemic

Supporting Documents

You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include:

  • Management accounts
  • Cash flow forecast
  • Business plan
  • Historic accounts
  • Details of assets

The above requirements will vary from lender to lender. If you don’t have everything listed here, a Recovery loan could still be an option!

Note: For many customers approaching their existing lenders for a smaller facility. The process may be automated and therefore may not require the same level of documentation.

For more information on what the Recovery loan scheme can do for your business give us a call or click below to start your application.

cbil loan scheme

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