Funding Options has urged businesses not to rely solely on the recovery lending scheme (RLS) if they are looking for finance.
The RLS was launched last month to replace the coronavirus business interruption loan scheme (CBILS) but there have been complaints about a lack of accredited lenders from the alternative finance space.
Business finance aggregator Funding Options, which helps firms find loans from a range of alternative providers such as peer-to-peer lenders, said it has processed more than £100m of non-RLS applications from 2,800 customers since CBILS ended.
Read more: Recovery loan scheme ‘off to a slow start’
“Our lenders who have applied to be accredited to the RLS are still awaiting their accreditations and for further information from the British Business Bank,” Funding Options said.
“We understand that for many business owners this waiting game can be frustrating, especially when facing cash flow challenges.
“During this time, we’re working hard to continue supporting our customers, by helping them access a wide range of alternative finance options with over 120 leading lenders who are open for business as usual, so that they can operate successfully and grow.”
The note from Funding Options said there is no guarantee that a business will be eligible for the RLS and rates may be higher than some alternative finance products.
The British Business Bank last week responded to criticism about the slow accreditation of lenders under the RLS.
A spokesperson from the bank said that unlike with CBILS, the bank will only announce lenders it has accredited under the RLS once they are able to start lending under the scheme and that so far it has approved 39 lenders for accreditation under the RLS of which 18 have begun accepting applications from borrowers.