As we enter the ‘new normal’ after lockdown, many SMEs are still suffering the knock-on effects of the COVID-19 pandemic. Support is available under the government-backed Recovery Loan Scheme, but only for a limited time. At Acorn Business Finance, we can help you through the process of applying before the RLS scheme closes on 30 June 2022.
What is the recovery loan scheme?
The Recovery Loan Scheme (RLS) is a government initiative for businesses affected by COVID-19. It was set up in 2021 to provide access to finance for viable businesses as they emerged from lockdown.
Under the scheme, if you are an SME trading in the UK, you can borrow up to £250,000 per lender to help your business recover from the financial impact of the pandemic.
RLS can be used for some of the following areas:
- Business development
- Marketing costs
- New staff costs
- Working capital
- Business acquisition
- Partner buy out
- Refurbishment
- IT
- Stock
If you want to benefit from the government Recovery Loan Scheme, you’ll need to act quickly. Your last chance to get a business recovery loan ends on 30th June 2022, and lenders are already beginning to pull out of the scheme. Acorn Business Finance has access to all lenders currently offering the scheme, and with the ability to apply for multiple RLS facilities at the same time, we are able to potentially achieve a much larger advance than the £250,000 per lender.
Applying for the RLS scheme with Acorn Business Finance
Here at Acorn, we specialise in brokering business loans for SMEs. Interested in applying for the Recovery Loan Scheme? We make it a quick and painless process – here’s how it works:
- Call us for a chat – we’ll talk informally and get to understand the particular requirements of your business
- Using your latest financial accounts as a guide, we’ll provide an indicative quote to illustrate what we expect to be able to achieve for you, based on our experience with both CBILS (Corona-virus Business Interruption Lead Scheme) and RLS applications
- Our application form takes less than 10 minutes to complete. Once you’ve completed the form and e-signed our quote, we will present to the relevant lender(s)
- Typically, we see decisions made within one week. Once we have the decision from the lender, finance documents are issued swiftly
- Once documents have been completed, funds are generally transferred within 24 hours
Are other government recovery loans still available?
During the pandemic, there were several government backed loan schemes available to businesses whose profits had been affected. These included:
- Bounce Back Loan Scheme (BBLS)
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
These previous loans were all discontinued in March 2021. The good news is, if you have previously taken out a loan under these schemes, you can still apply for further finance under the Recovery Loan Scheme.
Why choose Acorn as your broker?
We’re a friendly, independently owned brokerage specialising in finance for SMEs. We take a personalised approach to ensure that you get the best level of service, while making sure your data is protected at all times.
- We work closely with every current lender offering, so we can promise to find the best rates for your business
- Unlike High Street banks, our finance solutions are bespoke and flexible, we’ll work with you to find the best solutions for your business
- We don’t over-promise: if we say we can help you, we’re as good as our word
- Is speed of the essence? We have a clear understanding of each lender’s traits and requirements, which generally lead to successful decisions
- When you apply for the government Recovery Loan Scheme, the money can typically be in your account within 5-7 working days, reducing the lag time between lender and client
Acorn’s experience
RLS can be used to help ease a variety of problems, and we have a wide range of examples from existing customers.
- A well respected retailer of cricket clothing and equipment who sell both well known brands, and their own popular brand of equipment, manufactured in India. Due to the ongoing issues and delays with shipping they were struggling to keep up with demand for these products and were looking to increase their stock levels to capitalise on the demand for their equipment, and also reduce lag on the supplier chain. The £100,000 RLS facility provided by us allowed the business to invest in increased stock levels and, in turn, has helped the business to increase its turnover and profits.
- A multi-practice firm of solicitors, based in Birmingham, were expanding their operation in March 2022 by adding two more fee earners to work from one of their new offices. Having previously taken a CBILS facility, we were unsure whether we would be able to achieve additional funding for them, but with a strong proposal and some communication with the lender, we were able to provide £100,000 over 5 years. Our customer was extremely happy to receive funds as this gave them the working capital required to cover their salaries in the short term until they were billing effectively.
- A well established roofing and exteriors business required funds to buy the shares of a retiring partner. We managed to secure this firm £150,000 over 5 years through the RLS scheme. Interestingly, they had previously been declined for a CBILs facility last year, due to a stronger set of more recent accounts we were able to prove a positive trend within the business leading to an acceptance from the lender.
Contact us
For more information about the Recovery Loan Scheme or to have an initial chat with one of our brokers, don’t hesitate to contact us.
- Call us on 01242 395507
- Fill in our contact form
- Book a callback at your convenience
Or read more about the other business loans we offer
