If you’re reading this blog then you want to know about applying for the new Recovery Loan Scheme (RLS) with Metro bank. You’re in the right place! I’ve got tons of information to share with you in this blog.
Who should be applying, who shouldn’t be applying, and all of the info that you might need is right here.
The Bounce Back Loan Scheme (BBLS) closed to new applications on 31 March.
Banks are no longer accepting new applications, including for top-ups to existing loans. The government replaced them with a new loan called The Recovery Loan Scheme (RLS). This blog will be all about applying a Recovery Loan Scheme with Metro Bank.
What is the recovery loan scheme (RLS)?
During the pandemic, the government launched two schemes. One was called the Bounce Back Loan Scheme (BBL), and one was called the Coronavirus Business Interruption Loan Scheme (CBILS).
Both of these schemes, the goal of those was to fund businesses and keep them trading through these difficult times. The bounce back loans, which was more common loan that most businesses took were from £2,000 all the way up to £50, 000. Unfortunately, both of these scheme ended last March 31, 2021.
The reason the bounce back loan scheme was so good because the government backed up 100% of the loan. What that meant, if for any reason your business failed, the government would step in and pay the bank back 100%. There will be no risk to the bank. And so they would lend money fast.
What is the difference with the Recovery Loan Scheme and the previous loan schemes?
The main difference with the RLS is the government will fund 80% of the loan. If something happened to your business, the government would guarantee 80% and the 20% would be liable to the bank. Compared to the BBL, the RLS is only backed up 80% of the loan down from 100%. What that means is, they’re going to be a little more selective on who they lend to this time.
This time round you need make sure all your paperwork is in order prior to applying.
Recovery Loan Scheme With Metro Bank Requirements:
You need to get everything up to date with your accounts, get them filed with Companies House, and make sure everything’s ready prior to applying for one of these loans. Otherwise, you will have difficulty getting it.
If you have a bounce back loan, you can also get a recovery loan scheme. This is amazing news as a lot of businesses will need additional funding to get back on their feet.
These loans are to get you back trading to get you back open, get your marketing, sorted, and all the stuff that’s going to get customers for you for the rest of this year. So these are a lifeline to businesses, they’re incredible.
Who should be applying for a bounce a recovery loans with Metro bank?
(1) If you already have an account with Metro bank, you should be looking to apply with Metro bank.
That would be your first and best option, because they’ve already got a history with you. They know who you are, all of this stuff is in place. It the fastest route so if thats your bank go apply with them.
(2) The people who’s bank do not offer the Recovery Loan Scheme.
People should also consider Metro bank if their current bank does not offer The Recovery Loan Scheme. Not every bank is currently part of The Recovery Loan Scheme. If that is your bank, I recommend taking a look at Metro Bank, they did a great job with Bounce Back Loans so chances are they will be good with these loans.
Some of my students use a company called Cashplus, they’re great for setting up an account fast. Cashplus don’t provide The Recovery Loan Scheme. Those people had to look at other banks.
Recovery Loan Scheme (RLS) with Metrobank
Metro Bank is a great option. They’ve got great service. Tons of my students on my Business Accelerator used Metro Bank as an option to get the bounce back loan. All the experiences I personally had with them, and every one of my students had was pretty much over 95% positive rights, and that would be an option to look at them.