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Coronavirus Business Interruption Loan Scheme (CBILS)

Coronavirus Business Interruption Loan Scheme (CBILS)
What is it?

Financial measure announced by the governemnt to support small and medium sized businesses by providing access to a source of alternative finance if you are impacted by the coronavirus outbreak.

What are the details?

Size of business
The scheme is for UK businesses with annual turnover up to £45million

Loan amount
Lenders can provide up to £5million in the form of;
  • Loan
  • Overdraft
  • Invoice finance
  • Asset finance

Term
Loans and asset finance - up to 6 years
Overdrafts and invoice finance - up to 3 years

Lenders
More than 40 accredited lenders providing this finance

Availability
Scheme went live from 23rd March and will run initially for 6 months

What are the benefits?
  • No arrangement fees
  • Interest free for the first 12 months
  • Government backed (partial guarantee provided)

Eligibility Criteria


Purpose
Must be applying for business purposes only

Type of business
UK based business
Annual turnover up to £45million
Must generate +50% of turnover through "trading" activities

Reason for finance
To support the "trading" activities of the business

 

Application process


Contact an accredited lender
Lenders include high street banks through to small specialist lenders (over 40 in total). Use this link for the full list of providers https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/

Submit the requirement financial information
On application you can be expected to provide;
  • Historic financial statements (up to 3 years)
  • Management information (potentially up to 29th February 2020)
  • Current aged receivables/payables
  • Details of the amount of finance required and why
  • Cashflow forecast over coming months
  • Personal profiles for shareholders/directors/business owners
  • Details of existing facilities/finance

Hints & tips


Speak to your own business bank first
Often this will speed up the process, as your bank manager will already have a basic understanding of your business. Also basic details (including money laundering documentation) will already be on file.

Prepare your financial information before you make contact
Whilst historic financial statements and details of existing facilities/loans can be retrieved very easily, preparing management information and cashflow forecasts will take time. Have everything ready when making contact.

Get it right first time
As we all plan for future uncertainty over the coming weeks and months, it is a better outcome to obtain the right amount of finance first time (as opposed to the risk of having to return for more money in the future).

Use your accountant
Banks will still review your case as if it was any normal loan, checking for suitabillity and affordability. If numbers are not your forte, use your accountant to ensure you have a successful application, obtaining the right finance on the best terms for your business.

How we can help: Our relationships with CBILS lenders mean we have the specialist knowledge and expertise to take away all the pain and make a successful application on your behalf - offering a NO WIN NO FEE guarantee. Please feel free to contact us by calling 0121 706 8585 or email us at [email protected]
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