The details of how business recovery loans will be repaid will be determined by the individual lenders. In broad terms, the loans will be repaid over a period of up to six years. However, invoice or asset finance repayments may be over just three years.
As part of their assessment process, the lender will determine whether they believe your business is capable of repaying the loan over the agreed period. This usually means they will ask for information about the financial history of your business such as historic accounts, management accounts and a business plan.
They may choose to overlook concerns raised by weak business performance since March 2020, when the coronavirus pandemic began to significantly impact commercial life in the UK.
The lender will not request a personal guarantee for loans of under £250k, and under this scheme they cannot attach such a guarantee to the borrower’s principal private residence.
How we can help
We’re working with many UK businesses looking to recover and rebuild after the disruption of the Covid-19 pandemic. The business recovery loan scheme is a valuable opportunity for them to secure the working capital they require for growth.
If you’re looking for growth funding that allows you to push forward in 2021, talk to one of our team. Get in touch today to discuss whether a recovery loan could be right for you.
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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The first steps towards the funding your business deserves
Disclaimer: JD Capital Finance (Registered office -First Floor, Steeple House, Church Lane, Chelmsford, England, CM1 1NH, Registered Number 10128297) helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.