An RLS loan was designed to give viable businesses the financial boost they needed to recover and expand. Whether you needed to manage cash flow, purchase new equipment, or fund growth projects, the recovery loan scheme offered flexible solutions.

Here’s how it typically worked:

1. Application: Businesses applied through accredited lenders or brokers like Active Business Finance.
2. Assessment: Lenders reviewed turnover, trading history, and affordability to ensure the business was viable.
3. Approval: Approved loans could range from £25,001 up to £2 million, depending on the facility type.
4. Funding: Once accepted, funds were released quickly to help businesses stay on track.

Unlike many traditional facilities, an RLS loan did not always require security, making it comparable to other flexible funding such as unsecured business loans.

To qualify for a recovery loan, businesses had to meet clear criteria. While the scheme has closed for new applications, understanding eligibility helps when exploring similar funding options available today through the Growth Guarantee Scheme and other products.

To be eligible, you typically needed to:

• Be a UK-based business with turnover under £45 million.
• Have been trading for at least 12 months.
• Show that your business was viable, or would be viable with support.
• Not be in collective insolvency proceedings.

The scheme was open to limited companies, partnerships, and sole traders. Even non-homeowners, franchisees, or businesses with complex ownership structures were often eligible.

A business recovery loan could be used for a wide range of purposes designed to strengthen and grow your company. Some examples include:

• Investing in new equipment or technology.
• Expanding into new markets or locations.
• Hiring staff or upskilling existing employees.
• Supporting working capital and day-to-day operations.
• Refinancing existing debt under better terms.

For example, a restaurant might have used a recovery loan to refurbish its premises, while a manufacturing firm could invest in new machinery. Retailers, logistics companies, and eCommerce businesses also benefited from improved cash flow and stability through this type of funding.

The recovery loan scheme has now evolved into the Growth Guarantee Scheme, which continues to support UK businesses by providing access to finance through accredited lenders. Both programs share the same goal: helping small and medium-sized businesses secure funding to recover and thrive.

The main differences include updated eligibility criteria, new lender participation, and adjusted guarantee terms. However, the overall principle remains the same: businesses can still access competitive loans even if they lack traditional security or have faced previous challenges.

As a commercial finance broker with access to over 100 UK lenders, Active Business Finance simplifies your search for the right funding. Rather than approaching banks individually, our team assesses your needs, compares lender options, and handles the paperwork, saving you time and stress.

We specialise in helping limited companies find personalised financial solutions, including limited company loan options. Our clients choose us because we provide:

• Access to a wide panel of trusted alternative lenders.
• Transparent, friendly advice with no hidden fees.
• Support for complex ownership or trading situations.
• Quick decision-making and personal service.

Whether you’re exploring an RLS loan, the new Growth Guarantee Scheme, or other products such as asset finance for small businesses, our team is here to help.

While the recovery loan scheme itself has closed, the application process it introduced remains similar for current funding programs. If you’re looking to access a business recovery loan today, here’s how Active Business Finance can assist:

1. Consultation: We discuss your business goals and financial requirements.
2. Assessment: Our experts match you with suitable lenders from our panel.
3. Application: We prepare your documentation and submit it to the most competitive options.
4. Approval & Funding: Once approved, funds can often be released within days.

Documentation typically includes recent financial statements, bank records, and forecasts. By working with an experienced broker, you increase your chances of approval and guarantee the process runs smoothly.

If your business missed out on the recovery loan scheme, there are still plenty of funding options available. Visit our business finance services page to explore solutions such as:

• Unsecured small business loans
• Invoice financing for small business
• Revolving credit
• Asset finance for small businesses

Each option is designed to help you maintain cash flow, invest in growth, and keep your business moving forward.

Even though the recovery loan scheme has now ceased, its spirit lives on through government-backed and alternative finance products available today. Whether you’re rebuilding, expanding, or managing cash flow, our team can connect you with the most suitable lenders and funding terms.

If you’d like to explore options similar to the RLS loan or the business recovery loan, contact us today. We’ll help you compare lenders, understand your eligibility, and apply with confidence.

Get in Touch

020 4525 2521
info@activebusinessfinance.com

Golden Cross House,
8 Duncannon St,
London WC2N 4JF