Businesses seeking cash to fund investment or growth are being encouraged by Azets, the UK’s largest regional accountancy and business advisory firm, to apply for the ‘hugely attractive’ Recovery Loan Scheme (RLS) before it ends on 30 June 2022.
The RLS offers businesses loans of up to £2m of which 70% is underwritten government guarantee. It is available to businesses that have been affected by Covid and whose turnover is less than £45m.
The finance may be used for any legitimate purpose, including cashflow, investment and growth, but the business must be able to afford the additional debt finance required.
The RLS is available through lenders accredited by the British Business Bank. More than £1 billion has now been offered to SMEs under the RLS.
Mark Barrie, Funding & Strategic Partnership Director at Azets, is urging qualifying businesses to apply sooner rather than later. He said:
“It can take lenders a few weeks to process an RLS application so anyone considering this option should act now. The RLS offers a very attractive and accessible funding solution to SMEs trying to secure finance. The scheme officially closes on 30 June and an application must be assessed and decision made by this date. This means applications must be in well in advance of 30 June to give the lender time to fully review the application.”
Mark Barrie also highlighted the attractions of the Super Capital Allowances scheme, which allows 130% capital allowances on qualifying plant and machinery expenditure through to 31 March 2023.
“SMEs could secure an RLS loan, invest in the business and further benefit from generous capital allowances of 130%. It is a great opportunity to borrow, invest and save and it is unlikely that we will see such an attractive incentive again,” he said.
“Covid loans and support measures will soon be over, and whilst there is a rigorous assessment applicable to the RLS, it is one of the most attractive funding options currently available.”