The government first launched the Recovery Loan Scheme (RLS) as means to support UK businesses’ access to finance. In hopes of providing them with a path to recovery from horrors that the pandemic caused businesses across the country.
The scheme was primarily planned to run until the end of 2021. However, in the autumn budget of 2021, the government announced it would extend the RLS until 31st of June this year.
The Recovery Loan Scheme is open to businesses of any size as of present. This renewed version of the scheme came into effect on January 1st, 2022. So, not only is the scheme now extended but there are also new guidelines that you should probably know about.
So as of the 1st of this month, the government implemented a lower maximum lending amount available to businesses (£2m). Along with a lower government guarantee (70%).
Can I get a Recovery Loan with poor credit?
It may be no surprise to you that if you have bad credit, you will most likely have limited Recovery Loan options open to you. You should also expect your interest rate to be higher should you get accepted onto the scheme.
However, even if you have been refused forms of credit in the past, it may still be worth applying. Lenders review applications taking many factors into consideration, and your case may be considered an exception. So, it is always worth giving it a try.
Nevertheless, you will be pleased to know that the scheme interest rates are capped at 15%.
As a sole trader, is a recovery loan accessible to me?
Yes, sole traders are able to apply to the scheme.
However, please keep in mind that your business must generate more than 50% of its yield from trading activity in order to be accepted.
How can Scaffold Finance help?
Scaffold Finance currently work with a number of finance companies who have been approved by the British Business Bank. This is so we can offer the Recovery Loan Scheme to our customers. You can find this list of finance companies on the British Business Bank’s website.
If you would like any more information on what we can offer you and your business here at Scaffold Finance, then please don’t hesitate to get in touch with us. Either give us a call on 01494 506 383 or alternatively email us on email@example.com. You can also visit our contact page for additional ways to find or contact us.