The Recovery Loan Scheme launches on the 6th April and will run until the 31st December this year, subject to review.
Similar to CBILS, the Government will guarantee 80% of the finance to the lender, hence hopefully making some company borrowing decisions easier.
There are three type of finance, term loans, invoice finance and asset finance.
Term loans
These are available from £25,000 to £10m and are over terms up to six years. No personal guarantees are needed on loans up to £250,000.
Leasing and Asset Finance
For agreement between £1,000 and £10m per company with lease repayment up to three years.
Will asset finance and leasing companies offer the Recovery Loan Scheme?
Yes. A range of asset finance and leasing companies have already been signed up to the previous CBILS scheme. Many of these leasing companies will apply and be accepted to offer leasing via the Recovery Loan Scheme.
What are the benefits to my company using a lease organised via the Recovery Loan Scheme?
- There is a higher chance the leasing company will give you a credit acceptance
- No personal guarantees are needed on lease deals up to £250,000
Will the interest rate on a lease using the Recovery Loan Scheme be the same as a normal lease?
Yes.
Can you use the Recovery Loan Scheme and also get the 130% Super-deduction tax relief?
Yes, as long as you use a lease purchase or loan agreement, subject to the normal rules such as your credit, qualifying brand new assets etc.
Can I use the Recovery Loan Scheme if we have already received support via CBILS?
Yes, you can still have access to Recovery Loan Scheme finance, subject to credit and eligibility criteria.
Recovery Loan Scheme Approved lender
WestWon work with a range of approved lenders who can offer 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