With the numerous increases to interest rates recently, cashflow may be under pressure to finance debt. If this is an issue for your business, or will be with debt renewals coming up, then it may be worth looking at the Recovery Loan Scheme.
Initially the scheme was introduced to help businesses recover after the pandemic. However, phase 2 of the scheme was launched on 1 September 2022 and the government plans to run the facility until 2024.
Eligibility
All businesses trading in the UK with turnover up to £45m are eligible providing that the business is not in difficulty. Businesses who have previously taken Government backed loans such as CBIL or Bounce Back Loans are still eligible to apply.
Key Features
- Funds can be used for any legitimate business use.
- £25,001- £2m can be borrowed for a term loan or overdraft.
- £1,000- £2m can be borrowed for asset finance.
- Terms are up to 3 years for invoice finance and up to 6 years for loans and asset finance.
- You don’t need to have been impacted by COVID to qualify.
- Your principle private residence cannot be taken as security.
- Lenders are required to pass on the economic benefit to your business which may result in favourable interest rates.
For more information, please see the link below to the British Business Bank website:
https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/for-businesses/
If you have any queries please do not hesitate to contact the office.