“When life goes back to normal…” 
 
We have heard this phrase an awful lot lately, and while we do hope to see a degree of normalcy it does not look likely that we will all be able to pick up and carry on like it was 2019. 
 
 
 
 
Business Loans for Growth and Stability 
 
There are several business loans available, and you are wise to do your homework. We would like to highlight two in particular: 
 
Revolving Cashflow Facility 
 
The Revolving Cashflow Facility (RCF) is a flexible overdraft type facility for growing businesses. 
 
Here is what you need to know: 
 
Minimum 12 months term 
Your business must have been in business at least 3 months 
The set-up fee is 3% of the fund amount 
You are only charged interest on what you use at 0.075% per day (75p per £1,000) 
No interest is payable on the balance 
There are no monthly admin fees 
Loan amounts are between £10k to £500k 
Unsecured loans will be accepted up to £85k but amounts above this threshold will need to be secured. 
You must be a homeowner 
Interest is calculated weekly and charged on a Monday only on what you’ve used. 
 
Under normal circumstances, a bank will not offer an overdraft for a new business, and certainly not a large one. This makes the RCF an incredibly useful product. 
 
We have found that 95% of our customers renew this facility each year as it gives them the peace of mind that they can still pay salaries and debtors during difficult times, but they are not charged interest on unused amounts. Many choose to increase the fund annually as their business grows. 
 
Without a doubt, coping with fluid and unpredictable financial obligations can be a major stressor for business owners. The RCF allows you to focus on your business and we can then work with you to support your long-term funding challenges. 
 
The Bounce Back Loan Scheme 
 
The Coronavirus Business Interruption Loan Scheme (CBILS) was introduced to assist SMEs which have been affected by the pandemic. However, only a very low percentage of SMEs qualified for this scheme. 
 
The decision was made to encourage businesses to look into the Bounce Back Loan Scheme (BBLS) which is an excellent product. 
 
This is what it looks like: 
 
No payments for 12 months 
After 12 months the interest is a low 2.5% a year 
Loan amounts available from £2,000 to £50,000 
The loan amount is 6 years, with no early payment penalties 
Available to UK-based businesses established before 01 March 2020 and which have been affected by the coronavirus 
 
The RCF is a great product to compliment the BBLS for cashflow purposes and to give businesses peace of mind until we return to “normal life.” 
 
In Conclusion 
 
Small and medium-sized enterprises may be more vulnerable to economic factors, but they are also more flexible than corporate giants. 
 
With the support of these business loan facilities, business owners can focus on how to diversify their offerings, bolster their business and expand their customer base. 
 
Entrepreneurs can be remarkably enterprising in difficult times, and we do hope that your business will be one of those to exit the COVID-19 pandemic intact, with a bright future. 
 
For more information on business loans please feel free to contact us, and we will be happy to assist. 
 
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