Compass adds Recovery Loan Scheme to offering
Tuesday, June 8, 2021
Compass Business Finance has become accredited to offer the new Recovery Loan Scheme from the British Business Bank.
The Recovery Loan Scheme (RLS) was launched on 6 April and runs until 31 December, although the end date is subject to review.
It is in addition to the other coronavirus loan scheme offerings – BBLS, CBILS, and CLBILS.
The British Business Bank said the RLS was aimed at providing financial support to UK businesses “as they recover and grow following the coronavirus pandemic”.
It can be used for "any legitimate business purpose" including cashflow and investment, but companies must be able to afford the additional debt.
Firms that have already taken out a CBILS, CLBILS or BBLS facility are also able to access the new scheme, again subject to affordability.
Compass Business Finance’s accreditation became effective yesterday (7 June).
Director Jamie Nelson said as a result the firm could now offer something extra to both smaller companies that would have used the Bounceback Loans, and to larger firms or groups that previously only had access to CLBILS.
“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.”
Compass also explained that with RLS the cap on borrowing has been increased from £5m to £10m per borrower, while the lower limits have been reduced to £1,000 for asset and invoice finance, and £25,001 for term loans.
The British Business Bank said that a key aim of the scheme was to improve the terms on offer, but if a lender was able to offer the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.