Why are businesses taking Recovery Loans?

A Recovery Loan carries a government guarantee to the lender of 70% of the outstanding funds. This adds security to the loan because in many cases the government will repay 70% of the loan to the lender should the business default. This security means that lenders are willing to give money to businesses who may previously not have been given finance at the competitive rates offered by the Recovery Loan Scheme. Repayment periods can be up to 6 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.