The Recovery Loan Scheme is now closed. Compare alternaive business loans with our business finance division Think Business Loans.
Think compare a vetted panel of around 100 trusted UK business lenders
The Recovery Loan Scheme (RLS) offered government-backed financial support for UK businesses looking for finance to recover or expand following the pandemic. RLS closed for applications, but you can apply for alternative funding that can be used to cover a range of business costs including cash flow, growth and investment.
The Recovery Loan Scheme was available to businesses that saw their trading affected by the coronavirus pandemic. Applications are now closed, but the scheme had the following conditions:
There are no restrictions on turnover, which means you can apply no matter how much money your business makes. And you can still apply even if you’ve already taken out government-backed support including Bounce Back Loans, CBILS, CLBILS, or the Future Fund. But if you have an outstanding debt with any of these schemes, this could affect the amount you can borrow.
Your business won’t be eligible for a loan under the Recovery Loan Scheme if it falls into any of the following categories:
Applications for Recovery Loan Scheme Loans closed on June 30, 2022, but we can search for alternative funding for your business
To compare business loans as an alternative to a Recovery Loan Scheme loan, speak to the team at Think Business Loans, the business finance division of Bionic.
Recovery Loan Scheme loans are secured by the government, which means you don’t need to offer a personal guarantee when applying for a loan. Even so, you are 100% liable for the repayment of that loan.
If you’re borrowing more than £250,000, your lender can ask for a personal guarantee, but you can’t offer your own home as a personal guarantee. The lender can only use this personal guarantee to recover a maximum of 20% of the amount you owe after the proceeds of all other available collateral have been taken, such as other business assets.
To help make Recovery Loan Scheme loans available to more businesses, the government guarantees 80% of the finance to the lender. This offers lenders more security as the government guarantees that they’ll get most of the money back if a business can’t repay the loan.
These loans are provided by private lenders - not the government - and, as the borrower, you are 100% liable for the debt. Missing repayments or defaulting on a Recovery Loan Scheme loan will affect your credit score and could lead to problems getting credit in the future.
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To help you understand more about the Recovery Loan Scheme, here are the answers to some of our most frequently asked questions.
Applications for Recovery Loan Scheme Loans closed on June 30, 2022.
We can still search for the following types of finance that were previously availble under the Recovery Loan Scheme, but they will no longer be government-backed:
RLS applications are now closed, but we can compare alternative finance options. Under the Recovery Loan Scheme, term loans or overdrafts were available for borrowing between £25,001 and £10 million per business. Invoice finance and asset finance was available for amounts from £1,000 to £10 million per business.
The length of the loan depends upon the type of finance you apply for. Business overdrafts and invoice finance facilities are available for up to three years, while term loans and asset finance facilities can be taken out over six years. Unlike a Bounce Back Loan, which deferred repayments for 12 months, you’ll need to start repaying the loan straight away.
Applications for the Recovery Loan Scheme are open until June 30, 2022.
Interest rates are capped at 15%, but the amount of interest you pay will depend on the amount you borrow, the type of loan you take out, the lender you go with, and your current circumstances.
Personal and business credit ratings won't affect your eligibility, but your lender might register your Recovery Loan with the credit reference agencies. This means a record will be held on your credit file and your credit rating might be affected by any late repayments or failure to pay.
Let the team at Think know how much you need to borrow and what you’ll use the finance for. They’ll use smart data to find out more about your business.
The team at Think will compare Recovery Loans from a panel of providers – including high street banks and alternative lenders - to find the right finance for your business.
You then choose the loan you want. Think’s tech-enabled team will answer any questions you have and help with the application to improve your chances of approval.
If you take out a loan, we'll be paid a commission by the lender that is included in the rates we quote.