Funding Circle has made personal guarantees a requirement for all borrowers seeking funds through the new iteration of the recovery loan scheme (RLS), which the lender was recently approved to offer.
The government-backed lending scheme is being administered by 53 lenders, including a handful of alternative lenders. Funding Circle was approved to offer the scheme last month.
Each lender has the flexibility to decide whether or not to request personal guarantees under the terms of the RLS.
Funding Circle asks for a personal guarantee on all of its loans, including those under the RLS. However, it has added the provision that principal private residences cannot be taken as security.
In a blog post explaining the terms of its RLS offering, Funding Circle confirmed that it can offer loans ranging in value from £25,001 to £250,000 with terms from two to six years. There will be no early settlement fees, and the platform can offer a decision to borrowers in as little as one hour.
Eligible borrowers must have a turnover of up to £45m, and they must have been trading in the UK for a minimum of two years. The loan must be used for business purposes such as working capital or investment, and the company should not be in difficulty or have any collective insolvency proceedings ongoing.
“We’re delighted that we’re offering the government’s RLS once again, which allows us to yes to even more businesses and help them adapt during challenging times,” said a platform spokesperson.
“Thanks to our innovative technology, you only need to fill in one, simple 10-minute application on our website. Then, we’ll assess which product is right for you on the best possible terms, with a decision coming in as little as one hour.
“If we can offer a business a loan on similar or better terms without RLS, we will do so.”
The new iteration of the RLS follows on from a previous scheme, which Funding Circle also delivered. The former peer-to-peer lending platform also offered the government-backed coronavirus business interruption loan scheme, which was a precursor to the RLS.