What is the Recovery Loan Scheme?
Struggling to grow your business? The Recovery Loan Scheme (RLS) can help.
This government-backed program offers easier access to funding for a cashflow boost or new equipment, with competitive fixed rates and the security of knowing your home won’t be at risk.
Is my business eligible for the Recovery Loan Scheme?
The Recovery Loan Scheme (RLS) is designed to help a wide range of small and medium-sized businesses in the UK.
Here’s a quick rundown to see if your business qualifies:
- Trading in the UK: Your business must be actively operating in the UK.
- Turnover: Your annual turnover (including any group companies) should be £45 million or less.
- Trading activity: In most cases, your business should generate more than half its income from trading activity.
- Financial health: You should be a viable business and able to afford repayments.
- Previous loans: Having used other COVID-19 loan schemes (CBILS, CLBILS, BBLS or previous RLS) doesn’t disqualify you, but it may affect the amount you can borrow.
What are the Benefits of the Recovery Loan Scheme?
The RLS fuels growth with easy funding, fixed rates & flexible options
Flexible Funding
The scheme offers a variety of loan products, including term loans, overdrafts, and invoice finance.
Protect Your Assets
Unlike some loans, the Recovery Loan Scheme doesn't require your personal residence as security.
Boost Business Growth
With access to additional funding, your business can invest in new equipment, boost working capital, or explore expansion opportunities.
Predictable Repayments
RLS provides fixed interest rates, giving you certainty and allowing for better budgeting.
Any Purpose
RLS loans can be used for a variety of business needs, from inventory purchases to marketing campaigns.
Competitive Rates
The RLS is government backed, with fixed, competitive interest rates.
Compare Recovery Loan Scheme
Research 100’s of lending products in minutes using our market leading platform
Prefer to talk? Call us on 01242 696 235
What can Recovery Loan Scheme loans be used for?
RLS loans fuel business growth by providing capital for operational needs, new equipment, marketing, or even debt consolidation.
Improving cash flow
Buying equipment
Hiring staff
Purchasing inventory, materials or stock
Refinancing existing debt
Marketing and advertising
Covering staff wages
Operating costs and expenses
Frequently Asked Questions
Is my business eligible?
Most UK businesses with a turnover under £45 million and a viable trading model qualify. Charities and colleges with lower trading income may need to show a COVID-19 impact.
How much can I borrow?
The RLS offers loans between £1,000 and £10 million, with the specific amount depending on your business needs and lender assessment.
How much are the interest rates?
RLS offers competitive fixed interest rates, set by the lender but typically lower than unsecured business loans.
How long can I borrow for?
The term length varies depending on the loan type and lender, but generally ranges from 6 months to 6 years.
What documents do I need to apply?
Required documents typically include business plans, financial statements, and ownership information. Specific requirements may vary by lender.
How long does the application process take?
The application process is generally faster than traditional loans, often with decisions reached within weeks.
Can I apply directly under the Recovery Loan Scheme?
No, you apply through accredited RLS lenders like Adept. We can help you find the best fit for your needs.
Can I use an RLS loan to pay off other debts?
Yes, you can use an RLS loan for debt consolidation, potentially simplifying your repayments and reducing interest costs.
What happens if my business struggles to repay the loan?
The government guarantees a portion of the loan, but it’s important to have a solid repayment plan in place. Discuss repayment options with your lender if difficulties arise.
Who is responsible for the Recovery Loan Scheme?
The British Business Bank is the government agency responsible for overseeing the RLS. Their website provides comprehensive information about the scheme, including eligibility criteria, application process, and FAQs.