Kickstarting this week’s Business Finance Bulletin, the Recovery Loan Scheme has had a quiet start since its launch but the number of lenders on the panel is now slowly increasing. We look at the latest additions and what continues to hold the Scheme back.
The Start Up Loan Company is encouraging younger people to think about becoming entrepreneurs. This is off the back of an analysis of the 80,000 loans they have distributed which reveals a large portion have gone to new business owners in the 18 to 24 year old age range. How could the loan assist you?
To close, a look at findings from the latest Lloyds Bank UK Recovery Tracker, which uncovers that the UK’s key sectors are back on the path to growth.
If you prefer to read about this week’s news, here’s a transcript of the content…
More lenders offering the Recovery Loan Scheme; young and budding entrepreneurs encouraged to look at a startup loan; and key UK sectors of back on the growth trajectory. All of this in the latest Business Finance Bulletin.
Recovery Loan Scheme Lenders
The Recovery Loan Scheme launched on the 6th of April, and there hasn’t been an awful lot of noise in the marketplace as regards how successful or otherwise that it’s been. Before we take a look at why this is, let’s remind ourselves quickly of the key features of the Recovery Loan Scheme.
It’s designed to help promote growth, so if you’re looking for additional working capital or cash; buying plants and equipment and machinery, then this is the loan for you. If you don’t want to provide a personal guarantee, you can borrow up to a maximum of £250,000 with no personal guarantee. If you’d want to borrow more than your guarantee would be limited to 20% of the balance.
The interest rate is capped at 14.99% and in terms of the loan term, it depends on the type of product you take be it would be a maximum of three years or a maximum of six years.
Demand at the moment, is still a bit muted and it’s all down to the makeup of the panel. During the early days, it was really only the high street banks and a few other niche players but over the last couple of weeks, we’ve started now to see lenders coming on to the scheme, having applied for and being accredited by the British Business Bank.
The panel, as I record this, now stands at 27 lenders and the recent additions include Triodos bank, Atom bank and Synergy bank, so we’re starting to see some activity coming through.
However, one thing to bear in mind is that the appetite to support is going to be quite varied. The high street banks, well they’re probably going to be quite tough. The other ones are focusing on particular products, but also some of them are being very careful by saying it’s open for only existing customers.
Some of them are saying you have to provide security, which is a bit strange considering the government’s giving an 80% guarantee; a bit bizarre.
So you can see the panel is quite tight and there’s going to be reasons for you to really look closely at each of them to see whether it fits your needs.
If you want to know which lenders are on the panel, just go along to the British Business Bank website, which is www.british-business-bank.co.uk.
Alternatively, of course continue watching this Bulletin and periodically I’ll be telling you about all the new lenders who are coming on the Scheme.
Start Up Loans for Young Entrepreneurs
In the pandemic, one sector of society that has been hit particularly badly are the millennials. These are the 18 to 24 year olds who’ve been hit hardest when it comes to unemployment with them taking the brunt of job losses.
Well, the Start Up Loan Companies, is launching a campaign to encourage these 18 to 24 year olds to not necessarily think about getting a job, but perhaps to think about starting a business.
If you are starting a business, of course, some startup capital will always help and that’s where the Start Up Loan Company comes in.
Since it’s been going since 2012, of the 80,000 successful loan applicants they had, 54% of them have been unemployed and of all of that 54%, 31% of them were 18 to 24 year olds.
Now, interestingly, over the last year, the number of people applying for this in the 18 to 24 year old range range has doubled compared to 2019. So we can see there’s a lot of interest from young people in terms of starting a business. And this is what the startup loan company is hoping to tap into.
If you are in that age bracket and you’re looking to start a business, check out startup loans, it’s a great product.
If there’s four of you, each of you can have a maximum of £25,000, or if you’re on your own, it’s a maximum of £25,000. The interest rate is 6% and you can pay the loan back over five years. Great interest rates and a great loan term.
If you want to know more, just go along to their website, which is www.startuploans.co.uk
Back on the Growth Path
According to the latest Lloyd’s bank UK Recovery Tracker, all the key sectors in the UK economy are starting to look at growth again.
Their latest report for April highlights that of the 14 sectors they regularly monitor, all 14 of them reported positive growth output in the month of April. Now that is the first time since August, 2018, that all 14 sectors have recorded growth. In March it was 11 sectors recording growth. So you can see there’s now been a further increase, which is great news for the economy.
Which sectors are leading the pack? Well it’s manufacturing and also technology. Those are the ones that grew by the largest amount.
However, what is even more encouraging that 13 of the 14 sectors though have reported growth plans over the next 12 months, which is going to exceed that recorded by their global counterparts. So it does appear that UK entrepreneurs and business owners are feeling a lot more optimistic and a lot more bullish than their overseas competitors.
Overall really good news for the UK economy, which means that hopefully we’ll finish 2021 with some very strong figures.
Well, that’s it for another Bulletin and as ever, I hope you enjoyed watching it, and if you did please don’t forget to subscribe to this channel or hit the like and share button.
I look forward to being with you again, next time.
Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.
Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.
I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.
Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.
Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!