I have spoken to a number of business owners that have been under the impression that the Coronavirus Business Interruption Loan Scheme (‘CBILS’) is automatically available and a loan will be provided on request. This isn’t the case. Here is a quick summary of key points and guidance for SME’s and how to proceed.
- This is a loan/finance scheme provided by a panel of over 40 lenders, not the government
- There is no automatic right to finance under the scheme
- Applications are made through the lenders and will require detailed information covering financial performance both prior to the virus outbreak and looking forward
- A properly considered proposal must be put forward explaining what actions have been taken to limit the cash impact on your business and how you can trade out
- The scheme is based on supporting finance applications that would be approved in ‘normal’ circumstances, but the Coronavirus pandemic has caused immediate cashflow problems
- If the lender can offer facilities under their standard terms they will do so
- Unlike past schemes the CBILS covers overdrafts, loans, asset finance and invoice finance
Be aware that banks and other lenders will be extremely busy at this time. Preparing a sound application will help give the best chance of a positive outcome. If you do not get the outcome you need, there are many other lenders in the market, so there are further potential options.
Details of the accredited lenders and further information on the terms of the funding available can be found by following the link below, or you can contact us direct here.
