Arsenal have £120million “to play with” after taking out a fresh bank loan – and they are free to use that money in the transfer market.

That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after Arsenal posted confirmation of the loan via Companies House.

The borrowing itself will be used to cover the costs of another loan taken out in April using the government’s Covid Corporate Financing Facility.

That loan was due to be repaid this month and Arsenal will return that cost using this new arrangement with Barclays bank.

Maguire explains that in contrast to the club’s previous CCFF deal, this new configuration will allow the Gunners to spend the cash any way they please.

He told Football Insider correspondent Adam Williams: “I’m not sure they could have renewed the old loan. There was no guarantees.

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“There were also restrictions in terms of the CCFF from the Bank of England. But in terms of the Barclays loan, it’s Arsenal’s money to play with.

“The Barclays relationship gives Arsenal a greater degree of flexibility. That could be beneficial for the club because you don’t have to ringfence it in terms of day-to-day operational costs.

“The Kroenke family have got an awful lot of work to do to convince the Arsenal fans of their intentions. This new loan could be used for recruitment and retention issues.”

Arsenal posted a £47.8m loss for the last recorded financial year.

Recruitment could be a big cost for the Gunners this summer as they look to improve on an 8th-place finish last season.

In other news, Arsenal suffer major blow in pursuit of Premier League defender.