COVID Working Capital Loan vs Start-up & Growth Loan: What’s the difference?
09 Nov 2020
Before applying for a loan through Business Loans Scotland (BLS), it’s important to know the difference between our two loans currently offered, the COVID Working Capital Loan and the Start-up & Growth Loan.
By understanding the differences, it will help you apply for the loan which best suits the needs of your business and will also ensure that you receive the correct funding amount required.
About the COVID Working Capital Loan…
Available only until 31st December 2020, the COVID Working Capital Loan has been introduced and designed in response to the COVID-19 pandemic.
These loans are therefore only available for a limited period of time with the aim being to support businesses which have been financially impacted by the COVID-19 pandemic and need to raise working capital to help their business survive during these extremely challenging times.
Due to the nature of this loan, all borrowers will also receive a 3 month capital and interest holiday and borrowers do not need to have match funding to secure one of these loans. COVID Working Capital Loans range from £25,000 to £100,000, however loans of up to £250,000 may be considered in exceptional circumstances.
About the Start-up & Growth Loan…
Differing from the COVID Working Capital Loan, our Start-up & Growth Loan is the bread and butter of BLS. These loans, under the Scottish Growth Scheme, will continue to support Scottish based SMEs with funding to start-up or grow.
These loans, which range from £25,000 to £100,000, can be used for various purposes including, but not limited to, purchasing new or used plant or equipment, buying or renovating business premises, introducing new product lines or recruiting new employees.
These loans have supported many Scottish SMEs on their journey to achieving their start-up or growth aspirations and are the perfect type of finance for those looking for match funding to fill a gap.
So, although these loans serve different purposes, do they have anything in common?
Yes, although created to serve different audiences, both loans have many similarities. These include:
- A fixed interest rate of 6%
- No additional fees or charges
- On-going support from one of our Loan Officers
- Repayment period of up to 5 years
- Simple online application
To find out more about either of the loans available through BLS, visit our website today: www.bls.scot