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Government-backed loans for Covid recovery

We’ll help you find the right recovery loan scheme

Think agent

Get government-backed financial support with the Recovery Loan Scheme (RLS). Compare loans and lenders now.

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Recovery loans icon

Government-backed loans for Covid recovery

We’ll help you find the right recovery loan scheme

Get government-backed financial support with the Recovery Loan Scheme (RLS). Compare loans and lenders now.

£
Bionic

We’ll help you find the right Recovery Loan Scheme loan

Get government-backed financial support with the Recovery Loan Scheme (RLS). Compare loans and lenders now.

What is the Recovery Loan Scheme?

The Recovery Loan Scheme provides government-backed loans for businesses that need funding to recover from the effects of the pandemic, or those that are looking to grow. The scheme was launched in April 2021 to replace CBILS, CLBILS, and Bounce Back Loans. Applications are open until December 31, 2021.

How to apply for a business loan via the Recovery Loan Scheme

The team at Think Business Loans can compare a range of loans available via the Recovery Loan Scheme. Depending upon how much you need to borrow and for what purpose, you can compare the following types of loan:

Applications are open until December 31, 2021.

Before we can compare loans, we’ll need to make sure your business is eligible. You can apply for a Recovery Loan Scheme loan so long as your business meets the following conditions:

  • It is trading in the UK
  • Its ability to operate was affected by Covid-19
  • It would be viable if not for the pandemic
  • It's not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)

It’s also worth noting that your business won’t be eligible if it falls into one of the following categories:

  • Banks, building societies, insurers and reinsurers (but not insurance brokers)
  • Public-sector bodies
  • State-funded primary and secondary schools

You’ll need to complete an online application to prove your eligibility, and we’ll then compare finance options from a range of Recovery Loan Scheme lenders on our panel.

Once you’ve found a suitable loan and lender, they will carry out full identity, fraud protection, and anti-money laundering checks, before deciding whether to lend to you.

With those checks complete, the lender will then decide whether to lend to you. You may be offered a different type of loan if the lender can find a finance option that has better terms than one you might be offered under the terms of the scheme.

If your application is rejected, we can work to find a different business finance solution.

What documents do you need to apply for a Recovery Loan Scheme loan?

As well as carrying out the necessary identity and fraud checks, your lender will also want to carry out affordability checks. This means they could ask you to provide the following information:

  • A business plan
  • Profit and loss records, projected cashflow, forecasts, and other business accounts
  • Accounts to show the previous year’s trading
  • Details of any assets owned by your business
  • Details of any other business borrowing

You might also be asked to provide information on your personal finances.

How much can you borrow through the Recovery Loan Scheme?

There are several finance options available through the Recovery Loan Scheme. The type of business finance you take out will determine how much you can borrow and for how long.

  • Term loans – available for borrowing between £25,001 and £10 million per business. Repayments can be made for up to six years.
  • Overdrafts – available for borrowing between £25,001 and £10 million per business. Repayments can be made for up to three years.
  • Invoice finance – available for borrowing between £1,000 and £10 million per business. Repayments can be made for up to three years.
  • Asset finance – available for borrowing between £1,000 and £10 million per business. Repayments can be made for up to six years.

What can Recovery Loan Scheme loans be used for?

The Recovery Loan Scheme was introduced to help businesses recover and grow following the coronavirus pandemic. If your application is successful, you can use the funds for any legitimate business purpose, including:

  • Managing cash flow
  • Buying equipment
  • Meeting a one-off cost
  • Helping with payroll
  • Growing your business

Can you get a recovery loan if you have other loans?

Yes. If your business is eligible for a loan under the Recovery Loan Scheme, you can still apply even if you’ve already got a loan from another of the coronavirus support schemes, such as CBILS, CLBILS, or Bounce Back Loans.

You can also apply if you have any other business loans that are not part of any coronavirus support scheme. If you do have any outstanding finance elsewhere, although this doesn’t mean your application will be rejected, it could affect the amount you can borrow. Even though the Recovery Loan Scheme is government-backed, lenders will still look at affordability when considering your application.

Does the government repay Recovery Loan Scheme loans?

No. As with any loan, you’re 100% responsible for the repayments of a Recovery Loan Scheme loan. If you fall behind on repayments, this will affect your credit score and your lender could take debt recovery action against you.

The loan is government-backed for up to 80% of the loan value. This means the lender can claim back from the government 80% of the outstanding value of the loan if your business defaults on it. This guarantee was designed to give lenders the confidence to accept as many applications as possible. But even with this government guarantee, as the borrower, you are always 100% liable for the debt.

What happens if your business is rejected for a Recovery Loan?

If your business is rejected for a loan under the Recovery Loan Scheme, the team at Think Business Loans will try to find a different solution.

We can compare business finance solutions from a panel of trusted lenders.

  • iFunds gives you an eligibility check without the hard credit search
  • Keep track of your account and check your credit score using our smartphone app

To find out more about the Recovery Loan Scheme, give the team at Think a call on 0203 880 9880. We’ll run a free eligibility check and help with your application to help improve your chances of acceptance.

Recovery loan scheme

We’ll help you find the right Recovery Loan Scheme loan
What is the Recovery Loan Scheme?
How to apply for a business loan via the Recovery Loan Scheme
What documents do you need to apply for a Recovery Loan Scheme loan?
How much can you borrow through the Recovery Loan Scheme?
What can Recovery Loan Scheme loans be used for?
Can you get a recovery loan if you have other loans?
Does the government repay Recovery Loan Scheme loans?
What happens if your business is rejected for a Recovery Loan?

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How does Think Business Loans comparison work?

How Bionic Works

You tell us about your business

Every business is unique, so we first need some basic info on your business so we can find finance to fit your needs and circumstances. Our cutting-edge iFunds technology will match your business against the suitable loans and lenders.

How Bionic Works

We compare loans and lenders

We put your application to tender with our panel of lenders to find the most suitable solution. An account manager will then talk you through your options and you can track the progress of your application via our smartphone app.

How Bionic Works

We’ll manage your application

Once you’ve chosen the loan you want, we’ll handle all correspondence and information requests. Your account manager will be on hand to answer questions, give you regular updates and make sure you get your funds as soon as possible.

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