This is a powerful feature that was missing from CBILS. Of the 1.5 million SMEs with a BBL, many will need further financing as the economy opens and working capital is squeezed. Others would like to explore consolidating expensive overdrafts and credit cards. The RLS allows for both.
The maximum APR rate of a Recovery Loan will be 14.99%. If you assume a business requires a further £50k via a Recovery Loan and borrows at the maximum 14.99% rate, to top up their existing £50k BBL, then the weighted average APR for £100k loan will be 8.745% for £100,000 of borrowing, very close to the low end of high street overdraft range 5-35%, and much lower than credit card fees.
The opportunity to help smooth future cash flows for smaller businesses is now available to Capitalise and accountants alike.
How we can help
To help you get to grips with the new scheme quickly, we've created an RLS starter park with eveything you need to introduce the scheme to clients.
For capital solutions that sit outside of the RLS, we can help enhance your firm’s Capital Advisory offering, increasing client opportunities, bringing in commission payments and increasing your value as an adviser. Our Capital Advisory guide explores the types of capital available.