Compass Business Finance has been accredited by the British Business Bank to offer the Recovery Loan Scheme (RLS) enabling them to further support businesses as they recover and grow, following the effects of the pandemic.
The scheme is designed to help businesses affected by Covid-19 access funding for managing cashflow, investment, and growth, as well as, to improve the funding terms on offer. However, if a commercial loan or funding on better terms is available, without requiring the guarantee provided by the RLS, that will be offered.
Offering a number of similar features to the earlier Covid-19 schemes, the RLS also includes other benefits, for example, the cap on borrowing has been extended from £5million to £10million per borrower with the amount per group increased to £30million. Whilst the lower limit for asset and invoice finance has been reduced to £1,000, and £25,001 for term loans.
Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme, subject to affordability.
Jamie Nelson, director of Compass Business Finance, stated that, “Our accreditation under the Recovery Loan Scheme will enable us to provide more businesses with the funding they need to move forward, whether we’re helping them restructure existing debts or providing the funding for much needed investments.
“We are now better positioned to assist both larger groups of companies who previously only had access to CLBILS and those smaller companies who took Bounce Backs Loans but would benefit from further support.”
Compass Business Finance have a long-standing relationship with the British Business Bank, having previously worked with them to increase the availability of finance to smaller UK businesses, through Regional Growth Funds, the Enterprise Finance Guarantee, and the Coronavirus Business Interruption Loan Scheme.
The Recovery Loan Scheme is scheduled to run until 31st December 2021; however, this will be subject to review.
