Let me share with you everything you need to know about The Recovery Loan Scheme With Skipton.
In this post I share the pro’s and con’s of applying for The Recovery Loan Scheme with Skiptons.
What is a Recovery Loan Scheme (RLS)?
There were two schemes over the last year that have really helped support business owners and entrepreneurs like you. There were Bounce Back Loans (BBL) and the Coronavirus Business Interruption Loan Scheme (CBILS) .
The Coronavirus Business Interruption Loan Scheme (CBILS), let you borrow from £50,000 to up to millions pounds. This loan was aimed at medium and large business owners. It was a great scheme and kept thousands of businesses going during the pandemic.
The more popular scheme was The Bounce Back Loan Scheme. Its focus was on small and medium sized businesses, loans were smaller at £2000 to £50,000. Frankly it was an incredible scheme as it kept 100’s of thousands of businesses from closing their doors forever.
Lending was fast as the government back the loans up to 100%, this means if your business failed the bank would still be paid back.
The recovery loan scheme gives loans from £25,000 up to £10,000,000 and they are guaranteed up to 80%.
What do I need to prepare before applying a Recovery Loan Scheme?
Next, make sure your accounts are are up to date. If they need to be submitted get them in before you apply. Don’t wait till the last minute to submit them get them in.
Skipton and all the banks offering the recovery loan scheme will want figures they can look at.
Because these loans are back to 80% it means banks will be looking into your figures a lot more than with a Bounce Back Loan.
What if I am a new business?
If you’re a newer business and you don’t have annual accounts just get accounts up to where you’re currently at. You can provide forecasts, a business plan and other supporting documents on where you think the business is going to go.
Can I apply a Recovery Loan Scheme with Skipton?
(1) The people that should be applying people are the people that currently bank with them. Your loan application will get processed faster since they already have all the needed information from you. Rather than going to another bank its always best to go with a bank you have a history with.
(2) If your bank doesn’t offer the recovery loan scheme at the moment. If you need the money now and your bank does not offer The Recovery Loan Scheme, then you need to look at applying with other banks. Skipton is a great option for you to go apply to get a business account.