Updated: 20 July 2021
The Recovery Loan Scheme was launched on the 6th of April and follows the Coronavirus Business Interruption Loans Scheme (CBILS) and Bounce Back Loans Scheme (BBLS). It has been created to support businesses in managing their cashflow and growing their business.
Businesses can get up to £10 million (or £30 million per group) across facilities including loans, asset finance, invoice finance and overdrafts.
The Recovery Loan Scheme, like its predecessors, offers different types of finance: loans, overdrafts, invoice finance and asset finance. A personal guarantee isn’t required up to £250,000. However, unlike CBILS, the upfront fee and the first 12 months of interest are not paid on your behalf by the government.
Term loans and asset finance can last from three month up to six years and invoice finance and overdrafts are from three months up to three years.
At Funding Circle we offer Recovery loans of £25,001 to £350,000, with terms from 2 to 6 years.
In order to apply for a Recovery loan from Funding Circle you need to meet certain criteria:
What are the interest rates for a Recovery Loan?
The interest rates will depend on the specific lender as well as your own credit history. However, the interest rates cannot be more than 14.99% per year.
What are the interest rates for a Recovery Loan at Funding Circle?
The specific rate you’ll get will depend on a range of factors such as your credit history and your loan term. They start at 8.6% per year for Recovery loans and we’ve capped our rates at 12.1%.
However, if we’re able to offer you a loan on better terms without using the Recovery Loan Scheme, we will do so.
What other costs are there for a Recovery Loan at Funding Circle?
Our interest is charged at fixed rates, which means you don’t have to worry about surprise interest rate changes. Plus, if you want to settle the loan early in full, we don’t charge any additional fees.
We also don’t require a personal guarantee for Recovery loans of up to £250,000.