The Recovery Loan Scheme was launched in April and is currently set to run until December 31st. It is specifically intended to enable business owners who want to support plans of growth after the pandemic and can be used to facilitate new equipment, new staff members, or to manage your cash flow. The scheme offers loan sizes ranging from £25,000 to £10 million, with no minimum turnover and no personal guarantee necessary for loans up to 250k. Find out more from the British Business Bank here.
The government guarantees 80% of the loan to the lender, to ensure that lenders have the confidence to lend. However, so far, only a handful of lenders have been accredited by the British Business Bank. Let’s take a look.
Ebury
Ebury is one of the first finance groups that got added to the scheme. They are part of both the CBLIS scheme and this one, so they have a good list of options available.
The company is offering a revolving credit scheme of up to £3m for anyone who is covered by the customer overdraft system and the money is backed by a government guarantee. The minimum payment is £50,000.
Find out more here.
OakNorth Bank
OakNorth Bank is another facility which is providing customers with large business loans. They have six-year terms, and have a minimum loan amount of £500,000. That’s a lot of money, so you’ll want to make sure you play for keeps here.
The bank itself has also stated that they have a maximum loan amount on an offer of £10m per business, but also suggest that if a group level was wanted, they could go as high as £30m.
Find out more here.
Paragon Bank
Paragon Bank is a publicly-listed financial tech group. They offer loans under the scheme like a lot of people, but they have their own terms and conditions to keep an eye on like a lot of other groups.
For example, they have a £2m maximum loan size for each business and offer loans and asset finances options available for a maximum of 72 months. Their minimum loan size is £25,000.
Find out more here.
Aldermore
Another loan group that you should keep an eye on is Aldermore. They have a system that is based heavily on asset finances, and their term loans range from 3 months to six years. They can loan up to £10m per company, and they have a minimum loan amount of £25,000.
Find out more here.
Triodos Bank
Triodos Bank is another of the options which have been set up to have a variable rate or fixed-rate loan. They’re one of the latest lenders to get accredited, and their minimum loan starts at £100,000, capping out at £10m under the scheme.
Find out more here.
Take a look at the full list of accredited lenders here.
Who hasn’t been accredited yet?
There are some banks which are not accredited yet, which means it is important to keep an eye out for them. Popular examples include the following:
Sterling Bank
The group is in discussions with the BBB, and they want to offer access to the RLS. They hope to be taking applications on a regular basis and will be hopefully providing choices to people soon.
Find out more here.
Funding Circle
Funding Circle will be a key player in the Recovery Loan Scheme if they get accredited. Funding Circle was instrumental in CBILS lending, lending to thousands of UK businesses. The lender has applied for accreditation and will be notifying their clients if it successfully goes through.
Find out more here.
Get in contact with Funding Bay here, for a consultation of your business, and we will match you with the most suited lender.
