UK-based MarketFinance, a leading online lender that recently raised £280 million in debt and equity and was approved for flex loans, notes in a blog post that there’s “no denying” that last year was quite tough.
However, the MarketFinance team claims that “things are looking up” this year. The economy is “enjoying a better than expected recovery as restrictions continue to ease,” the company noted while adding that right now, UK businesses are trying to do everything they can “to make sure they’re primed to grow.”
MarketFinance’s management added that they are pleased to confirm that the platform is now “accredited to offer loans to small businesses through the Recovery Loan Scheme (RLS).”
The scheme is “designed to accelerate your post-pandemic ramp-up so you can start focussing on the future,” the company explained.
The firm also mentioned that previous government schemes such as The Coronavirus Business Interruption Loan Scheme (CBILS) assisted UK-based SMEs with getting through COVID-19 disruptions. Now, the British Business Bank’s RLS has been introduced “to accelerate post-pandemic recovery and drive your business forward long into the future.”
The UK government has committed to backing 80% of your loan via the scheme, “keeping fees low and making finance available to more businesses.” MarketFinance added that their applications are now “live and the scheme is set to run until 31 December this year.”
When you submit an application for an RLS loan with MarketFinance, you will receive:
- between £50,000 and £250,000
- repayable over 4 to 6 years
- for the first 6 months “you’ll only pay interest on a MarketFinance recovery loan.” After that you’ll also “start paying back the loan itself as well in every monthly payment.” In technical terms, that means that “after 6 months you’ll be repaying the principal (the funds you borrowed) and interest (paid on the funds you borrowed).”
A MarketFinance RLS loan “works just like any other loan,” the company clarified. If your application is successful, then you should be able to receive the funds within 48 hours of signing your documents, the company noted.
The MarketFinance team also mentioned that you can then “pay for the things that your business needs to grow.”
The company added that perhaps you’ve been waiting on “upgrading your equipment or hiring that person who can take a little weight off your team’s shoulders.” An RLS loan is a fast and convenient way to support the next phase for your company or business.
As noted by MarketFinacnce, you will cover the following:
- A fixed arrangement fee of 4%
- Interest from 7.6%
- Nothing for early repayment
The company also noted that they will be “making interest payments only in the first 6 months to give you a bit of extra breathing space.”
MarketFinance’s management added that the UK government “stipulates that lenders can’t ask for a Personal Guarantee for RLS loans of £250,000 or less.” If you’re not completely sure or certain about what a Personal Guarantee is – or why not having to offer one might be “good news” – you can learn more about that here.
As noted by MarketFinance:
“The scheme is designed for businesses that have, in some way, been affected by the pandemic. It’s only open to businesses that are registered and trading in the UK, and you’ll need to undertake fraud and credit checks.”
The company added:
“Whatever sector you’re in, apart from a handful of exceptions …an RLS loan could come in extremely handy. It’s essentially to help foot the costs of pandemic recovery and boost your growth. For example, if you’ve had to pivot, or are launching a new product or service due to COVID-19 then this could be perfect for you.”
To find out more about this update from MarketFinance, check here.