Asset Finance Recovery Loan Scheme (RLS)

What is the Recovery Loan Scheme (RLS)?

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 for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with changes applying to all offers made from the 1 January 2022.

From 1 January 2022, the following changes will come into force:

  • The scheme will only be open to small and medium sized enterprises (turnover <£45m)
  • The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
  • The guarantee coverage that the government will provide to lenders will be reduced to 70%
  • These changes will apply to all offers made from 1 January 2022

We are accredited for RLS via the British Business Bank.

We can support with Asset Finance for advances from £25k.

For more information directly from the British Business Bank website click here.

What are the key features of the RLS?

  • Up to £2m facility per business. The maximum amount of a facility provided under the scheme is £2m per business (maximum £6m per group).
  • Term length. Term loans and asset finance facilities are available from three months, for up to six years
  • Interest and fees to be paid by the borrower from the outset. Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple COVID-19 schemes. Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Personal guarantees. Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Guarantee to the lender. The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

How do I know if I’m eligible to apply for the RLS?

  • COVID-19 impact. The borrower must confirm to the lender that it has been impacted by COVID-19.
  • UK-based. The borrower must be carrying out trading activity in the UK.
  • Viability test. The lender will consider that the borrower 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.
  • Credit and fraud checks for all applicants. Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
  • Turnover limit. Businesses with a turnover not exceeding £45m per annum.

What are the key features of our Asset Finance RLS?

  • Borrow from £25k
  • Finance terms between 12 and 60 months

Please note: As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by RLS.

How can we help?

We work with our broker partners to help SMEs access our range of Asset Finance products.

If you are currently an Aldermore customer, please speak to your existing Asset Finance broker.

If you don’t have an Asset Finance broker, please complete our short form so we can find out how we can help.

Important information

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.


T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.