Funding Circle approved to deliver new iteration of RLS
Funding Circle has been approved to deliver the latest iteration of the Recovery Loan Scheme (RLS).
The government-backed loan scheme was relaunched in June 2022. To date, more than 50 mainstream and alternative lenders have been authorised to deliver loans of between £25,001 and £2m to UK-based businesses.
Funding Circle will be capping its RLS loan values at £250,000.
Read more: BBB re-opens RLS lender accreditation
Applicants must have a turnover of up to £45m and must have been trading in the UK for at least two years. The loan should only be used for business purposes such as working capital or investment, and the business should not be in difficulty or have any collective insolvency proceedings ongoing.
“The RLS aims to improve the terms on offer to borrowers,” said a Funding Circle spokesperson.
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“If we can offer a Funding Circle business loan on better terms, we will do so.”
Funding Circle was the first peer-to-peer lender to be accredited under the RLS predecessor, the Coronavirus Business Interruption Loan Scheme (CBILS).
Soon after, the platform said it planned to pause all non-CBILS lending from retail and institutional investors to concentrate on supporting the government programme until further notice.
The platform went on to exit the retail P2P lending market later that year, and now focuses solely on alternative business lending.
Read more: BBB: Over 90 per cent of RLS loans are on schedule