Let’s talk about The Recovery Loan Scheme With Ulster Bank.
These loans are an incredible way to fund your business, but you MUST get your house in order prior to applying.
What is a Recovery Loan Scheme?
Let’s talk about the recovery loans scheme.
Is it good,?
Is it bad?
The Recovery Loan Scheme launched on the 6th of April 2021. Businesses can apply for between £25,000 and up to £10 million in finance, depending on the size of their business. What this new scheme is for is to replace two very successful schemes that have helped people during the pandemic.
The 1st one was the Coronavirus Business Interruption Loan Scheme (CBILS). This was for medium and large businesses that wanted to borrow hundreds of thousands or maybe millions of pounds to keep their businesses going.
The other more popular scheme was the Bounce Back Loan Scheme (BBL). Maybe you had a bounce back loan already. The bounce back loan scheme was an incredible scheme, where businesses were able to borrow between £2,000 and £50,000.
It was super easy to get a Bounce Back Loan and kept a lot of Businesses going during these uncertain times.
Who should be applying a Recovery Loan Scheme with Ulster Bank?
First and foremost, it should be people that already have a relationship with Ulster Bank.
Your best option on getting one of these recovery loan scheme is from the bank that you already have a relationship with. They’ve already got your paperwork on file, they’ve got a history with you. It’s going to be the fastest place for you to get one.
So if you already have an Ulster Bank Account then apply with them.
Requirements:
Prior to applying you must get things in order, these loans are harder to get than the Bounce Back Loans. If you don’t get prepared you might get declined, that will slow you down getting funded which obviously you dont want.
- Check all your paperwork has been filed.
Look on Companies House, make sure your accounts are up to date. If you haven’t been trading long enough, you need to get forecasts and a business plan ready prior to applying for your Recovery Loan.
Another thing to ensure is filed is your companies Annual Return on Companies House. It takes less than 5 minutes to file, if you are unsure if you have done this already ask your accountant.
Who else should be applying a Recovery Loan Scheme Loan with Ulster Bank?
Not every bank is currently lending via this scheme, some of them are going through the process of being an accredited lender which takes time.
If your bank is not lending at the time of reading this, then you might want to consider Ulster Bank.
Ulster Bank have a great reputation and are a great option so well worth checking out.
What should I prepare before getting an account with Ulster bank?
If you’re going to apply with Ulster Bank, you don’t want to be just contacting them thinking it’s going to be as easy as a bounce back loan. You need to do things like look on Companies House, check all your paperwork has been filed.
Look on Companies House, make sure your accounts are up to date. If you haven’t been trading long enough, you need to get forecasts and a business plan ready. prior to applying for one of these recovery loan schemes.
You need to get things in order.
Ulster are going to do a credit check on you. So prior to applying, I highly recommend that you to go on a credit expert and check your personal credit rating.
- If there are any problems get them fixed prior to applying, you can look at things like if you have a County Course Judgement (CCJ), you need settle it. So it can mark on your credit account as settled.
- If you’re behind on some payments, work out a payment plan.
These tips will gradually increase your credit rating. If your credit rating is bad, you may want to hold off for a month or two before applying to Ulster Bank.
Pay some bills on time and get things in order, it’s time to get your head out the sand now and get focused on your business. Even if you cannot clear debts you have just by making payments moving forward will improve your score.
What can I do with a Recovery Loan Scheme?
The Recovery Loan Scheme is designed to help your business get back on track. You need to focus on getting customers for your business, focus on growing the business using marketing.
Its not for you to buy new Laptops, Cars and stuff your business does not need.
In Conclusion
The Recovery Loan Scheme is backed by the government 80%, this takes a lot of risk away from the bank. Thats good news as it means they will be more likely to lend to businesses. However they still have 20% risk, so work hard on presenting your business in the best light.
This is the time to invest in marketing and getting and keeping customers. Use the loan wisely to grow your business and get back on track.
There’s so much more content on the recovery loan scheme and business tips on this blog.
Here are some posts you will find useful.
Recovery Loan Rejected, heres what to do next.
Recovery Loan Scheme EVERYTHING you need to know.
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