The Recovery Loan Scheme (RLS) was slow to kick off initially with only one lender being able to offer the service, very much like when CBILS started, but slowly as other lenders enter the market the tight credit seems to be easing. We are seeing more and more acceptances on the RLS now that more lenders are in the market.
The acceptances we are getting have drastically sped up. We were seeing a 6/7-week turnaround at one point, whereas now this is down to within a month. We even had a £350K offer turned around from application to offer in 24 hours. Of course these 24 hour turn around are few and far between but it is important to know that it can happen.
The RLS has been extended until June 2022, allowing more businesses to take advantage of this Scheme. If you want to know more about RLS and how your business can benefit you can find out in our ‘Recovery Loan: What Is It and Who Can Use It?’ blog.
We also wanted to highlight the importance of questioning a rejection decision from a lender. Recently we have received a few auto declines from one lender which upon further investigation have been tech errors on their end, we contested and had one overturned for £350K.
If it would not have been contested, they would have never relooked at the deal, so we urge you when looking at raising funds for your business to speak to a Commercial Finance Intermediary, this way if a ‘tech lender’ declines an application and a full reason as not been given as to why, your advisor will be able to go back to the lender and find out for you. It may be an error on their part.
Algorithms are great a getting a quick answer, but if you do receive a ‘No’ we always recommend requesting the full decline reason as opposed to the standard ‘doesn’t fit criteria’ answer.
It is also worth noting that if you have had a CBILS you can refinance this loan on to a RLS, stretching out the repayments. We talk all about the benefits of Refinancing a loan in our ‘Should I Refinance or Restructure An Existing Loan?’ blog.
It’s important that businesses have a trusted advisor who they can speak to about any Commercial Finance questions they might have. At ABL we are always happy to sit down for a chat and talk through all your options, explaining how everything works, and questioning the lender on your behalf to be able to present you with the best options.
If you want to know more about your options, we are always happy to help, the ABL team is available on 01274 965356 or drop us an email.
If you want to find out further information about this topic you can get in touch with Luke via email or call him on 07415 864 567 to talk through your options.