Have you heard about the Recovery Loan Scheme (RLS)?
Does your business need a cash injection? Over the course of the past year, Covid-19 has had a considerable impact on all UK businesses. More than 95% of UK businesses are small-medium sized enterprises with less than 250 employees. This means cash flow has been reduced due to the impacts of the pandemic. However, most businesses have had to pause operating. With the latest relaxation of England Covid-19 restrictions on Monday 19th July, and employees being encouraged to go back to the office, businesses are looking for help to get them back to pre-pandemic levels. Looking for certainty during these times can be challenging, but one feature that WestWon can offer support through is the Recovery Loan Scheme.
So how can the RLS help to grow and stabilise your business?
Launched on the 6th of April 2021, the Recovery Loan Scheme (RLS) essentially provides financial support to UK businesses as they recuperate from being impacted by the pandemic. The funding itself can be used for managing your businesses cashflow, growth and investment. The scheme will run until the 31 December 2021, although this is expected to be extended into 2022.
Has your business has previously borrowed from any of the other Covid Loan Schemes such as the Bounce Back Loan Scheme and the CBIL’s scheme? If so, the RLS is still accessible for your business to use.
It works in that all accredited lenders can be found on the British Business Bank website. However, when looking to borrow, you should first approach your own finance provider. A government-backed guarantee is then given to the lender by the RLS. As the borrower, you are then 100% accountable for the debt. There are also conditions on much a company is borrowing. For example, if you are borrowing £250,000 or less, the lender will not take any form of personal guarantee. However, more than £250,000, and the lender can decide whether to take personal guarantees or not.
Hear what Government officials have to say
Rishi Sunak, the current chancellor of the exchequer has said “as we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”
Kwasi Kwarteng, the secretary of state for business, added that “the launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead”. This will in turn “protect jobs and prepare for a safe reopening as we build back better from the pandemic.”
As restrictions ease and businesses return to normal demand it is vital that this support is held in place. This will keep them running and growing during reopening.
Contact Us
Here at WestWon we work with several approved lenders offering funding via the Recovery Loan Scheme. If your business is looking for a Recovery Loan or asset finance, please call a member of our team now on 01494 611 456 or email hello@westwon.co.uk