Have you been rejected for the Recovery Loan Scheme (RLS)?

If you have been rejected for the Recovery Loan Scheme don’t panic! Since the start of the pandemic, the government has been trying to help businesses get back on their feet, through furlough which saw the government paying up to 80% of your staffs wages, Bounce Back Loans (BBL) which were guaranteed 100% by the Government, Coronavirus Business Interruption Loan Scheme (CBILS) and now the RLS.

What is the RLS?

The RLS was announced in the Chancellor’s 2021 budget as a replacement for the CBILS and BBLS which ended on 31/03/2021. The new scheme is designed to help businesses recover and grow post lockdown with loans ranging between £25,000 and £10m. These schemes have saved thousands of businesses from closing their doors forever. However, not everyone could get these loans, and many providers are requesting that directors give personal guarantees for loans of over £250,000.

Have you had your Recovery Loan Scheme application rejected?

If you are rejected for these schemes, all is not lost! There could still be ways we can help you. If you think a loan or cashflow boost is the best option for your business right now then have a look at the other options we can offer you! Such as:

Factoring – Do your customers take too long to pay your invoices? Sell your invoice to a lender who will assess the risk and offer you an advance on that invoice! Typically 75-80%.
Invoice finance – AKA Confidential Invoice Discounting. With this product you do not need to disclose to your customer that you have sold the invoice, this is great if you don’t want them to know you’re getting an advance on the payment.
Asset finance – for example, mortgages and car financing. The lender would have security over the asset and lends your company the money to acquire, rent or use the asset.
Merchant card facilities – Do you take a lot of card payments? You can take out a loan against this which you would only pay the agreed amount from your credit & debit card sales. Unlike a loan, there’s no APR or fixed payments, providers usually charge a one-off fee.
Construction finance – Got a big new contract but can’t afford to get to the first milestone? Construction finance is here to help!
Property and development finance – for the acquisition and development of property.
Credit Cards – We all know what these are, but credit cards for business tend to have lower interest rates compared to personal cards.