There’s no doubt that Coronavirus is going to create a lot of short-term change in how we live our lives in the UK. Outside of public health, a key concern is for businesses and although no one is quite sure how the economic landscape will look in the coming months, it is pretty certain that a lot of businesses are going to face tough times from sole traders through to PLCs.
What Is The CBILS?
Due to Coronavirus the UK Government have announced the Coronavirus Business Interruption Loan Scheme (CBILS) in temporary replacement of the Enterprise Finance Guarantee (EFG). The scheme helps businesses gain access to finance and loans that would otherwise not be available due to companies not being able to meet lenders’ eligibility requirements. To achieve this CBILS provides the lender with a government-backed 80% guarantee against the outstanding facility balance.
Please note however that the borrower remains 100% liable for the debt.
What can a CBILS loan be used for?
CBILS supports a number of business finance products including:
- Term facilities
- Invoice finance facilities
- Asset finance facilities
How Can My Business Apply For a CBILS Loan?
CBILS is being made available in the coming weeks if not sooner. You can apply for CBILS via approved lenders. The panel of lenders that we work with contains lenders that are approved for CBILS and will therefore enable you to apply.
Apply now to begin discussions with lenders, find out more information and get the necessary paperwork in order for when the funding becomes available.
CBILS Cashflow During Coronavirus
There are however a range of financing options that may be able to help certain businesses with their cashflow demands during the most disruptive phases of Coronavirus. For example, invoice financing can unlock cashflow from unpaid invoices which may be the lifeline that businesses need whilst operating through the coronavirus outbreak.
CBILS Asset Finance During Coronavirus
Depending on the type of business you run, a potentially quiet period over the next few months may be an opportune time to purchase new machinery that runs the risk of causing disruption whilst it is installed.
CBILS Borrowing For Businesses With Bad Credit During The Coronavirus Outbreak
Businesses with bad credit can also apply to borrow money which may help keep them operating. Although interest rates will be higher than borrowing from a high street lender, lending criteria is more relaxed and accessing funding or a business loan during the Coronavirus outbreak may be the difference between your company saying afloat or going bust.
CBILS Business Loans During Coronavirus
Business loans can be arranged for all business-related borrowing and for all types of business. If funding can help your business over the next few months, apply now and speak to an expert adviser who can help you find the best way forward.