David Marshall of Sterling Commercial Finance offers fresh thoughts on the British Business Bank Recovery Loan Scheme.
Six months ago, when I commented on the Recovery Loan Scheme (RLS), the article was headed in large capital letters ‘BE PATIENT’. The heading faintly amused me as it reminded me of the words on the front of The Hitchhikers Guide to the Galaxy which had ‘DON’T PANIC’ in large, friendly letters on the front cover.
Between the British Business Bank and the various Lenders involved, it has taken far longer than CBILS for some Lenders to be fully operational with RLS. However, while back in April there were only eighteen accredited Lenders to the scheme, there are now over seventy.
Not all of these will be relevant to the needs of all businesses. Some offer only certain products, e.g., Term Loans, Asset Finance, Invoice Finance or Overdrafts. Some are specific to certain geographies and do not operate in the East Midlands and to be fair, the British Business Bank website has helpful filters that will help you narrow your search.
What is not obvious is that some Lenders are only looking to support certain transaction sizes, or to lend to businesses making a positive impact on society or the environment.
Some are focused on international trade, while others are looking to support property transactions. When it comes to security, some Lenders will only finance specific business assets, others are looking for conventional security cover and there are those that will lend on a partially or unsecured basis (albeit with Personal Guarantees).
What is clear is that it is going to take you some time to identify the most appropriate Lenders likely to support your business. Alternatively, you might contact a Commercial Finance Broker to do the hard yards for you.
Find a broker that is authorised and regulated by the FCA, is NACFB registered, and importantly does not charge an upfront fee. At Sterling Commercial Finance Ltd we operate on a contingent basis so if we are unable to help it costs nothing.
David Marshall: E: Click Here T: 07764 512 840
David Griffiths: E: Click Here T: 07850 188 046