Compass Business Finance has been accredited by the British Business Bank to offer the Recovery Loan Scheme (RLS) to businesses.
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 £5m to £10m per borrower, with the amount per group increased to £30m, whilst the lower limit for asset and invoice finance has been reduced to £1,000, and £25,001 for term loans.
Businesses that 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, said: “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.”
The Recovery Loan Scheme is scheduled to run until 31 December 2021, though this is subject to review.