The chosen bank is allowed to offer a variety of loan products (term loans, overdrafts, asset finance and ID) with repayment periods from 3 months to 6 years. Unlike previous COVID schemes, the lender is allowed to ask the borrower for a personal guarantee.
You can find the full details here: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/
This new recovery loan scheme is designed to help UK businesses bounce back and thrive in the post-pandemic economy. Whether you are looking to expand operations, invest in new technology, or manage cash flow, this scheme provides a valuable financial lifeline.
Key advantages include the flexibility of loan types and terms, allowing businesses to choose the product that best suits their needs. The loans can be used for various purposes, such as purchasing new equipment, refinancing existing debt, or boosting working capital. With repayment periods ranging from 3 months to 6 years, businesses have the breathing room needed to manage repayments.
It’s important to note the 70% government guarantee, which reduces the lender’s risk and makes it easier for businesses to secure funding. However, the allowance for personal guarantees means borrowers need to carefully consider the terms and potential implications before committing.
For those in Northern Ireland, the loan cap is £1m due to EU subsidy limits. However the scheme still offers substantial support. To ensure you understand all the terms and conditions, visit the British Business Bank’s website and review the full details.
This recovery loan scheme is an excellent opportunity to fuel your business’s growth and stability in these challenging times.