01827 68939
info@shireleasing.co.uk
lockShire Online - Login
Twitter
LinkedIn
Shire Leasing logoShire Leasing white logo
  • About Us
    • History, Vision & Values
    • Meet the Team
    • Affiliations
    • Corporate Social Responsibility
    • Stakeholders (Section 172 Statement)
    • Career Opportunities
    • SME Finance Charter
  • Customer Finance
    • Types and Solutions
    • Vehicle Finance
      • Vehicle Solutions (existing customers)
      • Clean Air Zone Financial Assistance
        • Bath & North East Somerset
        • Greater Manchester
    • What Can Be Financed?
      • Catering | Restaurant Equipment Leasing & Finance
      • Gym Equipment Leasing & Finance
      • IT Equipment Leasing & Finance
      • Printing Equipment Leasing & Finance
      • Security Equipment Leasing & Finance
      • Air Conditioning Equipment Leasing & Finance
      • Finance For Farms
        • Farm Vehicle & Tractor Finance
        • Livestock Finance
        • Agricultural Machinery Financing | Agricultural Equipment Finance
        • Farm Diversification Funding
      • Renewable Energy Finance
    • Recovery Loan Scheme (RLS)
    • New Business Equipment Financing
    • Shire Members’ Club
    • Make a Payment
    • Testimonials / Case Studies
  • Supplier Finance
    • Services and Technology
    • Industry Specialisms
    • Training (Lead with Lease)
    • Case Studies & Testimonials
    • Supplier Support Portal
  • Blog
  • Resources
    • Resources & Guides
    • Videos
    • FAQs
    • Industry Terminology
  • Contact Us
CBILS recovery loan

What will business life look like now that the CBILS is no longer available?

19 AprShire LeasingfinanceNo Comments

Figures show that more than 1.6 million firms used the government’s emergency loan schemes to keep trading and minimise job losses. The schemes included the Bounce Back Loan Scheme, Coronavirus Large Business Interruption Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Covid Corporate Financing Facility.

These schemes have provided almost £180 billion worth of lending to date in total, supporting over a quarter of UK businesses. But, as of March 31 2021, the schemes were closed for new applications.

To mark the schemes ending, the Chancellor of the Exchequer Rishi Sunak commented: “I said we would do whatever it takes to protect jobs and livelihoods and that is exactly what we have done”.

“We’ll continue to protect jobs through our new Recovery Loan Scheme – part of our wider Plan for Jobs – as we move out of this crisis.”

The Recovery Loan Scheme (RLS) launched on April 6 2021 and will run into the end of the year, subject to review. But how does it differ from the schemes that have come before it?

Greater accessibility and flexibility

The objective of the RLS is consistent with the CBILS: to protect businesses and jobs. But as we are now at a different stage of the pandemic, the government felt that the financial support needed to be updated to reflect this.

The RLS no longer comes with the benefit of government cover for the first year of interest on the borrower’s behalf. However, the upside is that the scheme is more accessible than the CBILS.

There is no minimum annual turnover required to access the RLS (previously £200,000). Loans start from £25,001 (down from £50,000), with an upper limit of £10 million (up from £5 million).

Four finance types are available under the RLS: term loans, overdrafts, asset finance, and invoice finance facilities. When it comes to asset finance and invoice finance facilities under the RLS, the minimum amount you can apply for is £1,000.

Term loans and asset finance facilities are available for up to six years, and overdrafts and invoice finance facilities are available for up to three.

Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme, but they might find themselves limited on the amount they borrow through the RLS.

Finally, there are no personal guarantees on loans of up to £250k, and interest rates are capped at 14.99%.

The RLS is available through a variety of British Business Bank-accredited UK lenders. Shire expects to be accredited in the very near future.

Other credit facilities

While the RLS has been launched to support tens of thousands of UK businesses, it comes with a lending criterion designed to prevent taxpayer cash from propping up those that have failed.

Some have suggested that the scheme requirements are quite stringent, which could mean only a proportion of the market will get the funding they need through the RLS.

Supported by the British Business Bank, we are committed to supporting British businesses and have helped over 60,000 customers since 1990. Contact us today.

Tags: CBILS, finance, RLS
prev Budget 2021 – A summary of the super-deduction scheme for UK businesses investing in assets next Shire Leasing announced as Sustainability Sponsor of Manchester’s HOME
Shire Leasing

Related Articles

Salesperson's cheatsheet for selling finance

A Salesperson’s Cheatsheet for Selling Finance

11 OctSharon Price

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Quick Links

  • FAQs
  • Career Opportunities
  • Terms & Conditions
  • Privacy Policy
  • Fair Processing Notice
  • Make a Complaint

Get in Touch

Registered Office:
1 Calico Business Park
Sandy Way
Tamworth
Staffordshire
B77 4BF
CONTACT US

Shire Leasing PLC is Authorised and Regulated by the Financial Conduct Authority for certain types of consumer credit lending and credit related activities that are regulated under the Consumer Credit Act 1974 and by the Financial Services and Markets Act 2000. For certain types of products Shire act as a lender and a broker and for some products we act as a broker only. Our firm reference number is 313055.

Twitter
LinkedIn

 

Tel: 01827 68939
Email: info@shireleasing.co.uk

Registered in England and Wales
No02476571

VAT registered 558 894 080

Registered with the Information Commissioners Office Z4611407

HomeAbout UsBlogContact Us
© 2017 All rights reserved. Site by Catalyst
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT