Majority of business owners unaware of recovery loan scheme availability, survey reveals
Tuesday 14th March 2023
Rising business costs and 25% tax hike call for greater awareness of financial lifelines
In light of the recent March budget, corporation tax is set to increase from 19% to 25% for businesses with profits exceeding £250,000 starting this April. Coupled with rising operational expenses this year, it has become increasingly important for business owners and senior decision-makers to be well-informed about the financial support options at their disposal.
A recent survey we conducted with Opinium has revealed that just over a third (36%) of senior decision makers are actually aware that the Recovery Loan Scheme (RLS) is still available.
Only 5% of sole traders are aware the Recovery Loan Scheme is still available
The RLS was introduced by the UK government in 2020 to help businesses affected by the pandemic, and offers financial support in the form of loans of up to £10 million. The survey, which polled 500 senior decision makers across the UK, also found that awareness of the RLS varied significantly between different types of businesses.
Half of SME's unaware the Recovery Loan Scheme is still available
While 50% of SME's were aware that the RLS is still available, only 5% of sole traders knew about the scheme, suggesting that there is still work to be done in terms of communicating the availability of the RLS to smaller businesses.
Another interesting finding of the survey was that only a third of those surveyed were aware that the RLS covered invoice finance, indicating a lack of understanding about the full range of support offered by the RLS, and highlights the importance of providing clear and comprehensive information about the scheme.
Commenting on the survey results, John Atkinson, Head of Commercial Business at Novuna Business Cash Flow, said: "It's concerning to see that awareness of the RLS is still so low among senior decision makers, especially given the challenging economic conditions facing many businesses. We encourage all businesses to explore the support available to them through the RLS, and to seek advice from their financial provider or business support organisation if they have any questions."
For more information about the Recovery Loan Scheme and the support available to businesses (ends 30th June 2023), visit our Recovery Loan Scheme page here.
For the full results of our survey, click here.
