The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Why should I consider a recovery loan?
Phil Archer writes:
The Bounce Back and CIBILs loans brought in last spring originally replaced the Enterprise Guarantee Scheme. In turn, they have now been replaced by a new government backed Recovery Loan Scheme, which will run until the end of this year. This is designed to help businesses gain finance if they have been affected by COVID-19.
The Recovery Loan Scheme, which first became available on April 1, 2021, is designed for unsecured loans of sums between £25,000-£10 million and can be applied for at any of the major banks.
If a business already has other borrowing, such as CIBILs or a Bounce Back loan, the applicant will need to prove they will be able to make the appropriate repayments when the time comes to be approved for a recovery loan.
The finer details of who can apply for a recovery loan and for what purpose are, in some cases, yet to be confirmed. As I write, several banks are still ironing out their policies.
The big question is whether the recovery loan can be used to fund start-ups. Because applicants don’t actually need a trading history, at least one major bank has already confirmed recovery loans can be used to start a new business, providing applicants can ‘self-certify’ that they need the loan to start afresh because they have been affected by the pandemic.
Anyone applying for a recovery loan for a new business will need to supply a detailed business plan. We have already been made aware of individual applications being rejected because the business plan was simply not up to scratch. Therefore, new businesses with professionally produced plans have a far better chance of being approved.
The recovery loan may also offer the option to consolidate existing finance by bringing any business loans all under one roof. This can make loans easier to manage, as there is just one regular payment.
It also offers the chance to potentially ‘restructure’ finance, as renegotiating may offer more favourable rates on borrowing. Here, working with an independent adviser will enable good financial decisions to be made.
One key point to consider is that a recovery loan is not the only option for finance. Unsecured loans of up to £100,000 may be available elsewhere.
What applicants do need to do is to talk to an independent adviser, who can provide information on a number of schemes from many lenders. This means the right option can always be identified for individual circumstances.
If anything, the new recovery loan may have made the situation a little more complex, but with the right adviser you can still get a good result.
Our team add value not just numbers and are trusted to provide the appropriate advice dependent on individual circumstances.
d&t is a multi award-winning team of chartered accountants and expert business advisers to clients in multiple industries, as well as over 100 different franchise networks.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
_75_75_s.jpg)
Start your own Walfinch franchise
Yes
Find Out More£410,000
_75_75.jpg)
Request Free Information
Send a free enquiry to Walfinch for further information!

Start your own Chemex International franchise
Yes
Find Out More£153, 564

Request Free Information
Send a free enquiry to Chemex International for further information!

Start your own TREND Transformations franchise
Yes
Find Out More£600,000 to £800,000

Request Free Information
Send a free enquiry to TREND Transformations for further information!

Start your own Local Eats franchise
Yes
Find Out MoreIn excess of £70,000

Request Free Information
Send a free enquiry to Local Eats for further information!

Start your own Aspray Limited franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Aspray Limited for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added 4 years ago | 2 min read
-
Why your customers hate contacting you - and the money you’re losing as a result
Added one week ago | 2 min read
-
Closing the performance gaps in franchising
Added 2 weeks ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news