Recovery Loan Scheme update: from October 2021 you can apply for a MarketFinance business recovery loan up to £350,000

Apply for a business loan through the Recovery Loan Scheme

MarketFinance is accredited to provide business finance through the Government's Recovery Loan Scheme. Apply for an business recovery loan of between £50,000 and £350,000 below, or connect with the team to check if you're eligible.

6 months interest-only payments Borrow up to £350,000 Rates of 7.6% to 10.18% 4, 5 and  6 year terms


The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the COVID-19 pandemic.

RLS aims to help businesses affected by COVID-19 and can be used to kickstart your recovery. It's designed to support businesses that can afford to take out additional finance for business purposes, like managing cash flow, investment and growth. Businesses that have taken out a CBILS facility can apply for RLS.

A key aim of the Recovery Loan Scheme is to improve the terms available to businesses. If we can offer your business better terms through a non-RLS solution like a flex loan or invoice finance, without requiring the guarantee provided by the RLS, we will do so.

Find out how some businesses are using their recovery loan below.


  • A business loan between £50,000 and £350,000
  • Repayable over 4, 5 and 6 year terms
  • 6 months interest-only payments
  • An arrangement fee capped at 4%
  • Rates at 7.6% to 10.18%
  • No need for a personal guarantee up to £250,000
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  • What is the Recovery Loan Scheme?

  • The Recovery Loan Scheme (RLS) launched on 6 April 2021. The scheme is designed to help UK businesses access finance as they recover and grow following the COVID-19 pandemic. RLS aims to support businesses affected by COVID-19 and can be used for a wide range of business purposes including managing cash flow, investment and growth.
  • Can I apply for a business recovery loan if I already have CBILS funding?

  • Yes! Businesses that have taken out a CBILS facility are able to access the new scheme although the amount you have borrowed under a previous scheme may in certain circumstances limit the amount you may borrow under RLS.
  • Are there any businesses that can't apply for a recovery loan?

  • Yes, there are some businesses that aren’t eligible to apply for funding through the Recovery Loan Scheme.

    These are:

    • Banks, building societies, insurers and reinsurers (excluding insurance brokers)
    • Public sector bodies
    • State funded primary and secondary schools
  • Is a recovery loan a good fit for my business?

  • If you can prove your business has been affected by the coronavirus pandemic, then a loan through the Recovery Loan Scheme could be a good fit.

    Your business must also:

    • Be a UK-registered limited company
    • Be carrying out trading activity in the UK
    • Have a turnover of at least £200,000
    • Have been trading for 3 years or more
    • Have a director who is lives in the UK
    • Have an applying director who is a UK homeowner
    • Be currently trading and profit-making
    • Be able to confirm to us that your business has been impacted by COVID-19
    • Be able to provide your last 6 months’ bank statements and latest statutory accounts
    • Not have any unpaid CCJs worth more than £250
    • Not be currently facing any insolvency or bankruptcy procedures

      There’s a list of sectors already excluded by the British Business Bank in their RLS eligibility criteria. In addition to these sectors, we currently can’t support real estate, or international travel with an RLS loan.

      Like any other business loan application, MarketFinance will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between other lenders. We will consider that your business 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.
  • Can I apply if I’ve been refused credit in the past?

  • Yes, you can still apply for a business recovery loan even if you’ve been declined for a business loan in the past. Situations that would affect your ability to apply include insolvency proceedings such as filing for bankruptcy or outstanding County Court Judgements relating to your business or its directors.
  • How much will I pay for a recovery loan?

  • When you repay a loan, the amount you pay is made up of the principal (the funds you borrowed) and interest (paid on the funds you borrowed). With an RLS loan from MarketFinance, your repayments will only include interest for the first 6 months. After that, you’ll pay both the principal and the interest.

    Interest rates range between 7.6% - 10.18% and you’ll know exactly what your specific interest rate will be upfront. No hidden fees, no surprises.

    Interest and fees are to be paid by you from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the Recovery Loan Scheme facility.
  • What’s the most I can borrow?

  • You can apply for up to £350,000 through MarketFinance in the form of a business loan. There are also other accredited providers under the scheme who might offer other funding solutions. The maximum amount of funding you can apply for through the Recovery Loan Scheme is £10m per business (or a maximum of £30m per group).
  • Who is responsible for repaying my RLS loan?

  • The scheme provides MarketFinance with a government-backed guarantee against the outstanding balance of the facility. You (the borrower) will always be 100% responsible for repaying any debt that you incur through the Recovery Loan Scheme.
  • When will the scheme end?

  • The Recovery Loan Scheme will run until 30 June 2022, subject to review.
  • Can I apply for a recovery loan if I’m an existing MarketFinance customer?

  • Yes! Existing customers who have invoice finance, a business loan or a CBILS loan are more than welcome to apply for a loan through the Recovery Loan Scheme.
  • Will I be charged if I pay off my loan early?

  • No, you can settle your loan early at no extra charge.
  • What terms lengths are available on an RLS loan?

  • We offer repayment terms of 4, 5 and 6 years on a MarketFinance RLS loan. Term loans and asset finance facilities are available from other providers under the scheme from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.
  • Will I have to put down a personal guarantee?

  • No! Under the Recovery Loan Scheme, personal guarantees are not permitted for facilities of £350,000 or less. No personal guarantees can be held over Principal Private Residences.
  • What documents do I need to apply?

  • Every business that applies will need bank statements for the last 6 months and their latest statutory accounts. You may also be asked to provide a few extra pieces of information based on your specific business and unique funding needs.

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cash flow and a list of independent advice services.

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The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.


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