Invoice Finance Recovery Loan Scheme

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 20 June 2022, with changes applying to all offers made from 1 January 2022.

  • 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

What are the key features for the invoice finance RLS?

Invoice Finance variant

  • A fixed £ value up to a maximum of the facility review limit. Value is determined by the lender.
  • The maximum lending value of £2m
  • Available for terms between 3 months and 3 years


The funding can be increased to support ongoing working capital requirements, but will not consist of Disapproved Debt. Including but not limited to: inter-company debt, aged debtors and disputed debt. Any funding provided is subject to a maximum of 100% Approved Debt.

Term Loan

  • Sits alongside the client's invoice finance facility with Aldermore
  • Term loan maximum amount is £2m (minimum term loan of £25k)
  • For a maximum term of 6 years

Eligibility criteria

  • 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: Available to businesses with a turnover of less than £45M


For full details on criteria and eligibility, download our PDF.


About the British Business Bank

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

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. Visit

Invoice Discounting

Suitable if you:

  • Need to access cash tied up in outstanding invoices quickly
  • Have an established in-house credit control department
  • Would like the option of a confidential facility, so your customers needn’t know you're using it


Suitable if you:

  • Need to access cash tied up in outstanding invoices quickly
  • Do not have an in-house credit control department
  • Require our experienced credit control team to take care of debt collection

Construction Finance

Suitable if you:

  • Operate within the construction sector
  • Need timely access to working capital: advanced against uncertified applications for payment or staged invoices
  • Need a funding solution designed specifically for the construction sector

Asset Based Lending

Suitable if you:

  • Require a higher availability of working capital
  • Need access to funding secured against multiple assets within your business
  • Are looking at business driven change such as MBOs, MBIs, restructuring, mergers or acquisitions

Contract Finance

Suitable if you:

  • Typically operate under contracts
  • Have obligations to deliver goods or services over an extended period of time
  • Need access to advanced funding against your staged invoices quickly

Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.