The Recovery Loan Scheme is now closed

However, we are offering loans under the new Growth Guarantee Scheme (GGS), alongside our business loans. Visit our GGS page to learn more.

Learn more about the GGS

What was the Recovery Loan Scheme?

The final iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and was designed to support access to finance for UK small businesses as they looked to invest and grow.

Businesses that took out a CBILS, BBLS, or RLS facility before 30 June 2022 were not prevented from accessing RLS from August 2022, although in some cases it may have reduced the amount a business could borrow.

Recovery Loan Scheme-backed facilities were provided at our discretion, and we were required to undertake our standard credit and fraud checks for all applicants.

To have been eligible to apply for the Recovery Loan Scheme with Funding Circle, you must:

• Have had a turnover of up to £45 million
• Have been trading in the UK for a minimum of 2 years
• Have been a limited company
• Used the loan for a business purpose such as working capital or investment
• Not have been in difficulty or have any collective insolvency proceedings ongoing

Get a personalised quote without affecting your credit score

If you’re a limited company or LLP, you can get a loan decision without affecting your credit score. So you can assess your options with complete peace of mind.

Steps to Apply:

1. Check if you qualify in 30 seconds

   See if you qualify with no fuss

2. Apply online in 7 minutes

   Tell us about you and your business in our online form

3. Get your decision in as little as 1 hour

   If approved, you’ll get a personalised, no-obligation quote

4. Funds paid out typically within 48 hours

   Once you accept your offer, we’ll deposit the funds into your account

Frequently asked questions

How much could I have borrowed with a Recovery Loan?

At Funding Circle we offered Recovery Loans from £25,001 to £250,000. If you’d have liked to borrow more, the scheme goes up to £2 million.

How did the Government guarantee work?

The scheme provided lenders with a 70% government-backed guarantee if a business was unable to repay the loan, and the lender has gone through their normal recovery process. The borrower always remained 100% liable for the debt.

How much did a Recovery Loan cost?

The amount your Recovery Loan cost depended on the amount of money you wanted to borrow, your interest rate and your loan term.

We charged a one-off completion fee when you took out your loan, and your interest rate was calculated based on a number of factors, including your credit score and financials for business lending at the time.

There was also no fee if you wanted to settle the loan early. All our loans are fixed rate, so you’ll know exactly how much you’ll need to repay each month and what the cost of borrowing is.

How did the Government subsidy work?

RLS loans were supported by a Government guarantee and count as a form of subsidy. There are limits on the amount of subsidy a business can receive. You can find more information on this on the British Business Bank’s website, or in your Subsidy Certification document if and when you accepted a loan offer.

Please note that the Government guarantee was to the lender, and your business remained 100% liable for the full loan amount.

Did I need a personal guarantee for a Recovery Loan?

We ask for a personal guarantee on all loans, including those taken under the Recovery Loan Scheme (RLS). However, Principal Private Residences could not be taken as security under RLS.

Is there business finance support?

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.