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Back in April, the British Business Bank gave the details about the new Recovery Loan Scheme, which replaces the CBIL Scheme (Coronavirus Business Interruption Loan Scheme). We wrote a detailed blog about it Goodbye CBILS – Hello Recovery Loan Scheme which gives the top level information about the scheme and who can apply.
We are delighted that Funding Circle is one of the first Fintech providers to be accredited by the Government-owned British Business Bank to provide business loans through the Recovery Loan Scheme. As a specialist, independent finance broker, TVAF Asset Finance & Business Loans is in a position to start taking enquiries for any business who wants to secure cash for working capital or growth and investment. This is perfect if your business has been impacted by the pandemic.
Whilst many of the main high street banks are eligible to provide business finance through the Recovery Loan Scheme, securing business finance through a traditional lender can be very time consuming and difficult for businesses who need support from a dedicated account manager. At TVAF you will have dedicated personal support.
Each application will be judged on it’s own merit by Funding Circle, but the criteria that we are aware of is:
The main benefit is the personal guarantee. With a standard loan, the lender will require the personal guarantee of the directors/shareholders.
With the Recovery Loan Scheme, the loan is underwritten by the Government owned, British Business Bank, and they provide a guarantee to the lender for 80% of the loan.
If your loan is over £250k and you have given a personal guarantee, the lender will call in your guarantee first before claiming on the government’s guarantee
In either scenario your business remains 100% liable for the debt.
If you took out a CBILS loan, the government paid a Business Interruption Payment ( BIP ) to the lender. This payment covered the interest & fees for the first 12 months of the loan.
With the Recovery Loan Scheme there is no BIP meaning a business will have to pay all interest and fees from the start of the loan.
If you meet all of the eligibility criteria then your application for the Recovery Loan scheme will still be considered even if you have had previous support due to the pandemic. However, this may limit the amount you can borrow, but each application will be assessed on it’s own merits. Existing CBILS/CLBILS loans will be taken into account.
The TVAF Asset Finance & Business Loans team are now taking enquiries for the Recovery Loan Scheme, so please get in touch to discuss your funding needs.
Its very early days in respect of the Recovery Loan Scheme but we expect many applications to be approved, particularly noting the volume of loans we saw approved under the previous CBIS scheme. CBIS success stories included :
A commercial printer in Berkshire was looking to invest in two digital printing presses plus a finishing line as they had seen a significant uptick in demand to provide home learning and home working resources for school children and remote workers in response to the pandemic.
Find out how TV Asset Finance secured £260,000 funding through the CBIL scheme for new printing presses to meet increased demand.
A sports venue had previously taken out an initial £50,000 bounce back loan with the British Business Bank, but having been closed for much of 2020, we were able to provide a sensible solution to help this hard-working and highly profitable business remain cash-flow fit until such times as they could reopen again.
Find out how TV Asset Finance secured additional working capital for this newly established sports venue through the CBIL scheme.