The Government assistance programmes rolled out throughout the pandemic have been a popular choice for businesses across the UK. An attractive offer with 12-month interest free and 80% Government guarantee. However, both the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) have come to an end, funding over £75bn in finance to SMEs in one year.

All good things must come to an end, and this level of interest-free funding cannot be sustained in the long run. So as SMEs look to alternative sources, what are their options?


Recovery Loans

The Government have developed the new Recovery Loan Scheme (RLS) to plug the funding gap. There will be no interest free period on these loans and the number of lenders eligible to offer these loans is unclear. The smaller the number, the more likely SMEs may find themselves in a rather British queue, unable to access cash flow for their balances quickly. Strict criteria also include the requirement to prove definitively that the pandemic continues to impact business / trade, meaning some 'financially stable' businesses may not be considered.

So what is a good alternative?


Invoice Finance

Are you delivering B2B services? Issue invoices? Invoice finance may be the next step for your business, before considering RLS.

Waiting 30+days for payments on services completed, will seem like an eternity for businesses right now. Invoice finance has become a highly sought after product to free up cash flow. Speed and accessibility are essential offerings from financal solutions. Critically enabling businesses to access up to 90% of the invoice value in a matter of 24 hours, with full visibility and transparency on all incoming payments.

Flexibility on which debtors and invoices to finance, remaining in control, all whilst receiving the cash flow your business needs to continue forward.

As business activity reaches pre COVID rates and returns to its growth trajectory,the scalibility that invoice finance offers ensures cash flow remains at its optimum. 

For those businesses considering the next step, currently waiting on a critical cash flow invoice to be paid or advisors looking for the best option for their clients, consider invoice finance before alternative loans. Introduce us to your business.