FINANCE
PICTURE : TOM BANKS
Overcoming the challenges of the Recovery Loan Scheme
There is no doubt that both CBILS and the Bounce Back Loan schemes were accessed by many SMEs across the UK to help them survive during the Covid pandemic .
Had they not been available , many more would have gone out of existence than actually did so .
There is also no doubt that there have been instances of fraud and of businesses using these schemes to access funding that was then used for other purposes than it was intended , such as the acquisition of other businesses or the purchase of assets .
The misuse and alternative uses of the schemes by some businesses should not detract from the help they gave many businesses that were badly affected by the pandemic .
Most businesses will have relied on the funds received via these schemes to keep themselves in business and even to grow their businesses and create additional employment and wealth .
They were undoubtedly excellent schemes that were launched quickly and efficiently by the government in extremely difficult circumstances , and they should be seen as a major success .
But since the schemes ended in March , their replacement , the Recovery Loan Scheme ( RLS ), has been something of a damp squib and has proven difficult , if not impossible , for many SMEs to access .
The barriers some lenders have put up in the application process means that many SMEs will be excluded from being able to access funds under this scheme .
Already banking with the lender , or having to have been trading for at least two years , are among the many restrictions that have been put in place over and above the obvious ones of viability and serviceability .
The difficulty in accessing RLS has meant that many businesses have turned to finance brokers such as Marlin Corporate Finance to help them navigate the turbulent waters of the application process and achieve a successful fundraise .
The long , fruitless hours trying to find a lender willing to accept their application and then approve it have left many SME owners feeling frustrated and let down by the scheme .
The ability of the team at Marlin to navigate the various lenders ’ criteria and find one that is suitable for the applicant is at the very heart of what we set out to
Marlin Corporate Finance expert Darren Hakami can help SMEs access the cash they need to thrive .
achieve .
This way we aim to allow the business owner to focus on running their business and not worry about how their application is progressing .
Marlin Corporate Finance ’ s experienced team of ex-bankers and other lenders mean they not only have the expertise , but also the contacts , to find a successful outcome for their clients .
Our team have to jump through several hoops and produce accurate and meaningful cash flow and profit and loss forecasts , as well as management accounts and statements of assets and liabilities to achieve success .
While the RLS scheme is proving difficult to access , there are fortunately many lending options open to potential borrowers and the skills and knowledge of Marlin ’ s team will find a solution , saving time and money in the process .
The RLS scheme is not a like-for-like replacement of CBILS or the Bounce Back Schemes and should not be seen as such .
Fewer businesses will be eligible for the scheme and the others will have to find alternative ways of accessing finance . That ' s where Marlin Corporate Finance can help .
For more information , contact 01642 450020 and email enquiries @ marlincf . co . uk
The voice of business in the Tees region | 63