2021 hasn’t been smooth sailing for a lot of companies across the UK. With coronavirus still causing issues across many industries, it’s little surprise that a lot of business owners are still looking for some support to assist with getting back on track.
Thankfully, the Recovery Loan Scheme (RLS) was launched to deliver further help. It’s a Government-backed successor to CBILS, CLBILS, and BBLS, and aims to offer financial assistance so enterprises can flourish once again. The British Business Bank (BBB) oversees RLS.
Make sure that you are eligible
RLS is open to a wide range of businesses as it aims to support different industries and company sizes. The RLS is designed to assist businesses looking to continue recovery from the pandemic, so you can apply even if you’ve previously received Government-backed financial help. However, there are some criteria you must meet.
To be eligible to apply for an RLS loan, you need to:
Be trading in the UK
Be able to self-certify you were affected by COVID-19
Satisfy lenders credit and fraud checks
Generate at least 50% of turnover from trading activity
Not be subject to any relevant insolvency proceedings or collective insolvency procedure under national law
Please note: as defined by the British Business Bank, trading activity for RLS is any trading or commercial activity that generates turnover. Rental income (as long as it is UK based) is classified as a service income and is acceptable for RLS.
RLS is not available to:
Banks
Building societies
Insurers (insurance brokers are eligible)
Reinsurers
Public sector bodies
State-funded primary/secondary schools
Seek advice from an independent broker
When you’re applying for business finance, it’s always a good idea to speak to someone who can give you advice on what options are best for your specific needs. When you go to an independent broker like Sardison Capital, you’re going to a professional firm who will source the market and recommend suitable solutions that work for your business.
What’s more, they will likely be able to tell you whether a loan is going to be the right option for your business, as well as being able to assess your potential application and tell you whether you’d be eligible. Applying through a broker like Sardison Capital is also less stressful, as they will help you to fill out the right forms and assist in gathering your paperwork.
Tell the story about your business before and after the Covid pandemic
As part of any RLS application, you will need to be able to self-certify to a lender that your business has been impacted by the pandemic — that’s why you’re applying for financial help, after all. However, it’s typically not enough just to declare that this is the case, as a lender will want to know a few more details.
Take any opportunity you can in your application to tell the story of how your business was impacted by COVID-19. Whether it’s been a loss of income from closures or additional debt you’ve had to take on to cover your rent, these extra details can help the lender understand exactly why you need an RLS loan and what it will be used for.
Get your paperwork ready
When you apply for an RLS loan, you will need to provide various bits of documents to help support your application, so it’s worth speaking to one of the team at Sardison Capital and taking the time to gather everything you will need. With your paperwork in order before it’s required, you will have it in place and ready to submit for a slicker process. While the necessary paperwork will vary from lender to lender, you will need to provide:
Last two years complete accounts (including profit and loss page)
Up to date management accounts and trading performance evidence (including profit and loss and aged debtors/creditors list if available)
Business bank statements for the last 6-12 months
Ready to apply for the Recovery Loan Scheme?
Watch our short video below which will show you how to find the Recovery Loan Scheme page on our website.
View our How To Video's here.
Apply for a Recovery Loan Scheme (RLS) here.
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