Businesses can borrow up to £250,000 with no personal guarantee. Any investment plans that require funding can be accelerated using a finance product that protects their personal wealth. Interest rates are rising, securing a fixed rate loan now provides access to finance that is likely to be more expensive in the future. Repayment periods can be up to 5 years, meaning the investment can generate income over the term. The loan can be used for any legitimate business purpose including: equipment, vehicles, cashflow, stock, refurbishments, technology and marketing. 

The Recovery Loan Scheme was launched on 6th April 2021 and will be closed to further applications from midnight on 30th June 2022. 

The eligibility requirements for a Recovery Loan are: a minimum 2 years trading history, at least 1 year’s filed financial accounts, a minimum £200k turnover, a limited company or LLP, at least one of the directors or shareholders is a homeowner, UK-based in its business activity and adversely impacted by Covid-19. Complete our enquiry form with a few basic details and one of our Account Managers will call you back to discuss your needs. We will ask you to provide some business documentation, then Portman will complete and submit applications on your behalf. 

A personal guarantee (or director guarantee) is an individual’s commitment to pay a debt personally if the business cannot. Typically, a business owner or director, will act as guarantor for a loan, whereby they will become liable for a debt if the business can no longer pay. The personal guarantee reduces the risk for a lender. 

In the case of Recovery Loans, no personal guarantee is required up to a loan value of £250,000. This means that the business owner or director cannot be held personally liable, should the business default on the loan. Instead, the UK Government is guaranteeing 70% of the loan value to the lender.