Coronavirus business finance update

CBILS – Coronavirus Business Interruption Loan Scheme

As news continues to trickle out about the UK Government supported lending scheme we’ll continue to update you.

All the major high-street banks are signed up to deliver the scheme and so if you have a strong business and a good relationship with your bank then they should be your first port of call.

Your bank will have relaxed their lending criteria somewhat but they are by no means “giving money away”;

There are some 40 lenders in the scheme so if your bank is unable to assist then there may well be another option.

Your advisor team is working closely with our whole panel of lenders to keep abreast of which lenders are still lending and which have shut up shop. Contact us now and Save your business.

UPDATE – 15/07/2020

After a busy few months things are calming down on the CBILS applications

As previously the first port of call should be your bank if they are on the British Business Bank list of accredited lenders.

If you bank with Tide, The Acorn Account, Monzo or other providers who are not on the list of providers of CBILS loans then we have a number of independent lenders who will work with us to provide a loan either under the scheme or on normal criteria so your business is not disadvantaged in any way.

You can also apply for more than one CBILS using different providers, so if your bank came back short of your requirement it might be worth exporing with one of our experts.

UPDATE – 26/03/2020 14:00

This just in from one of the high-street banks, I’d expect the others to be broadly similar;

  • Coronavirus Business Interruption Loan Scheme (CBILS) covers lending to businesses between £25,001 and £5m
  • Guarantees and debentures are likely to be required depending on the level of funding requested
  • Loan term will be 1 – 6 years with a possible payment holiday for the first year
  • The loan is capped at 25% of the 2019 turnover OR 2 x annual wage bill, whichever is greater
  • The loan can only be used where “the bank” would assess the business to have been viable in 2019 and that you will be able to recover from the Coronavirus crisis

They are asking for their normal lending requirements;

  • 3 years accounts and management information up to date.
  • Full details of existing debt
  • Cash-flow forecasts
  • 6 months bank statements for each business and personal bank account (every director/major shareholder)
  • Personal assets, liabilities, income and expenditure for every director/major shareholder
  • What security is available or being offered
  • What other options have already been explored – Furlough, business rates relief & grants etc.
  • How long should it take to recover once the restrictions are lifted and what plans/challenges are being considered

Considering some of that information will not be easy to come by some of our customers are opting to work with non-CBILS lenders, forgoing the payment holiday and instead working with lenders who can approve and have funds ready to draw down within days.

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Coronavirus finance update