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• 07 Jul

  Business Loans After The RLS Scheme Finishes

  

  During and after the recent COVID-19 pandemic many businesses were grateful to be able to access financial support through the various loan programs that were supported by the UK government. These included the CBILS and BBLS loan schemes which attracted 100% guarantees from the UK government in support of the lending. There are other options available.

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  RLS Scheme Finishes

  More recently, the British Business Bank launched the Recovery Loan Scheme, RLS, which provided further support with an 80% government guarantee, as we came out of the pandemic. These loan programs have now come to an end and these schemes have been closed to new applications.

  Alternatives After RLS Finishes

  If your business is in a situation where it requires further financial support, this could leave you wondering where to turn. The good news is that there are a number of funding options open to UK businesses and there are other loans that you can access instead of RLS. There are alternative business loans available even after the RLS scheme finishes.

  Recently, a new scheme the Growth Guarantee Scheme GGS has succeeded RLS.

  The U.K. market for business loans provided by banks and independent lenders is still very buoyant and financing will be available to many UK companies. This type of one-off lump-sum funding may be useful for businesses that need to clear creditors, pay off tax arrears or invest in future growth.

  Receivables Financing

  However, in some cases, businesses will require ongoing cash for working capital support. Rather than taking out a loan, the form of revolving credit such as invoice financing might be a better alternative. The principal advantage over a loan is that the funding grows in line with the growth of your turnover. As you raise new invoices, so new financing becomes available. As old invoices are paid off, so this pays off the finance.

  Revolving Finance

  On the basis that a business's sales stay relatively static, they can expect the amount of funding provided to become remain static. This is a significant benefit over a business loan where the value of financing reduces month on month as the loan is paid down.

  If you need to look at the options that are available to refinance your business, whether this is to support future growth or purely to ensure the survival of your company, we will be able to assist you by setting out the options that will be available in your particular circumstances.

  By Glenn Blackman