• Recovery Loan Scheme Versus CBILS

    The Recovery Loan Scheme versus the CBILS scheme.

    Recovery Loan Scheme (RLS) is the new government initiative to replace CBILS and BBLS (the loan schemes that have now closed to new applications). I wrote about it in my previous post following its announcement in March 2021: RLS - The Recovery Loan Scheme and Alternatives but so far there as been relatively little advertised about RLS when compared to CBILS.

    Recovery Loan Scheme Versus CBILS

    In the following video I take a look at the differences between the two schemes, the Recovery Loan Scheme versus CBILS, and how that is likely to affect the propensity to lend amongst those offering the new scheme. The reduced level of the UK Government's guarantee to the lender (80% of the loan value versus 100% under CBILS), is likely to lead to these loans being less liberally available than under the CBILS scheme.

    Are People Searching For RLS?

    I wanted to find out if people are searching online for RLS. Using Google Trends I compared the volume of search traffic for the two schemes, which revealed some insight into the level of demand.

    RLS Versus CBILS

    The following video details my findings when I compared the search traffic in Google, in the UK:

    Comparing The Two Loan Schemes

    When you compare the two schemes, there appears to be less profile or less demand for the new scheme. It could be either, or both of those factors driving the number of searches that are being seen online.

    There could be a number of reasons for this. The level of publicity appears to have been lower for the more recent scheme. It may be that the original scheme satisfied the majority of demand, or it may be that many don't qualify for new product. Another factor may be that loans don't always suit the funding needs of businesses that are undergoing a rapid growth curve. The funding is for a fixed amount, that does not grow in line with your business, as do other options such as receivables financing.

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