Impacted by coronavirus? Let’s bounce your business back into action!
Due to the impact of coronavirus, many businesses have suffered. Don’t panic! The finance industry is here to save the day!
Introducing the new Government led Recovery Loan Scheme. This finance product is here to recover your business allowing you to manage your cash flow more effectively, investment purposes or for growth.
What finance options are available?
What are the key features of the scheme?
There are many features to this scheme, in fact there are 7! These 7 key features are extremely beneficial to all businesses, so let's get into them.
The first key feature is that you are allowed up to a £10m facility per business. The minimum facility sizes vary, starting at £1,000 for asset finance and invoice finance and £25,001 for term loans and overdrafts.
The second feature is the term lengths. For term loans and asset finance facilities the term length is 3 months up to 6 years. While for overdrafts and invoice finance facilities the term length is 3 months up to 3 years.
The third feature is the guarantee to the lender to encourage lending. The scheme gives the lender a government backed guarantee against the outstanding balance of the facility. As the borrower, you remain 100% liable for the debt.
The fourth feature is the turnover limit. There is no turnover restriction for businesses accessing the scheme. You heard right, no turnover restriction!
The fifth feature is the personal guarantees. They are not permitted for facilities of £250,000 or less. Above £250,000 the max amount that can be covered under RLS is capped at a maximum of 20%.
The sixth feature is the access to multiple schemes. Businesses that have taken out CBILS, CLBILS or BBLS facilities are able to access the new scheme.
The final feature of the scheme is that businesses are required to meet the costs of interest payments and any fees associated. The annual effective rate of interest, upfront fee and other fees cannot be more than 14.99%.
Will I be eligible for the scheme?
Link Business Finance is here to help businesses who have been impacted, so together we can strengthen your business. The requirements for this scheme are:
Your business is trading in the UK
You can prove that your business has been impacted by coronavirus
So if you feel like your business matches the criteria and feel like your business could benefit from this scheme, don’t hesitate to get in touch, we are here to help!
Telephone: 01604 439699