Recovery Loan Scheme

We can leverage RLS to enhance your invoice finance facility, offering additional lending for up to three years, bolstering your business with increased working capital and improved cash flow management.

The RLS, a government-backed subsidy, encourages lenders to provide more funding. With a 70% government guarantee, it supports loans up to £2 million. RLS is applicable to various financing needs, including invoice finance, term loans, overdrafts, and asset finance.

Recovery loan scheme features include:

Up to £2m facility per business group

The maximum amount of a facility provided under the scheme is £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers.

Term length

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

Personal Guarantees

Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.


The assistance provided through RLS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.

Is my business eligible?

To be eligible for support via a recovery loan, a business must fulfill the following criteria:

Turnover limit:

The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).


The borrower must be carrying out trading activity in the UK.

No Covid-19 impact test required:

Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.

Viability test:

The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.

Business in difficulty:

The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.


The facility must be used to support trading in the UK and cannot be used to support certain export related activities. There are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland Protocol.

The following sectors are not eligible:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State-funded primary and secondary schools