ThinCats offers extra flexibility for RLS loans above £5m
ThinCats, the leading alternative lender to mid-sized SMEs, has announced new features for cashflow loans above £5 million that qualify under the Recovery Loan Scheme (RLS).
The additional benefits include:
Capital repayments – Up to 12 months capital repayment holiday considered on all loans with the potential for 100% bullet payments depending on leverage multiples
Lower rates and margin ratchet – reflecting the benefit of the guarantee, ThinCats’ borrower rates have been reduced and may, depending on the business and sector dynamics, be reduced further when leverage multiples fall below certain levels. For example, if a loan has an initial leverage multiple of 2.5x EBITDA, the ongoing interest rate may reduce by 25 basis points if the leverage multiple falls below pre-agreed thresholds.
Up to £15m funding per group – Although the maximum loan size per business entity permitted under RLS rules is £10m, ThinCats will support different business entities within the same group up to a combined total of £15m.
ThinCats was accredited by the British Business Bank under the RLS scheme in July. The scheme currently runs until 31 December 2021.
Mike Hackett, head of business development, ThinCats “The Recovery Loan scheme is an excellent vehicle for delivering funding to UK businesses as they seek to expand post pandemic restrictions. Although the scheme does not offer the same 12 months interest-free period as its CBILS predecessor, it can be used for a wider range of funding needs and at a lower interest rate than funding outside RLS.
As the maximum loan size is double the amount allowed under CBILS, RLS is particularly attractive to businesses seeking to expand through acquisition or seeking to build their working capital to fund growth. We are seeing strong interest from both corporates and private equity backed businesses. I would urge advisers or prospective borrowers considering new funding to act quickly given that the RLS scheme only runs for a further four months until the end of this year.
As part of our commitment to funding mid-sized SMEs we hope the additional flexibility announced today will provide further support in helping entrepreneurs maximise their opportunities to expand organically or through acquisition.”
