With the UK now in the midst of the most secure lockdowns since WW2, with all but essential businesses being closed for two weeks at the very least, we are seeing unprecedented disruption to businesses of every size.
It isn’t just small and medium sized enterprises that are going to struggle through this difficult time, even some of the world’s largest corporations are having to suspend their operations.
Not only does this worldwide disturbance effect business, it also means that companies are unable to pay their staff. Although the government has promised to cover 80% of wages during the pandemic, it still means that a huge number of people will inevitably lose their job.
In response to the current situation the UK government has made the Coronavirus Business Interruption Loans Scheme (CBILS) available from today.
What is CBILS?
CBILS is managed in cooperation with the UK government and the British Business Bank and will produce loans for SMEs of up to £5m for a maximum term of six years.
All applications will be processed through the 40 lenders that are currently part of the scheme and is eligible to any business with a turnover under £45m and are viable in conditions outside of the Coronavirus pandemic.
The government is ensuring that as many applications are accepted as possible by providing a guarantee on 80% of all money lent through the scheme. Any business that applies will also receive a 12-month interest free holiday.
There are invoice finance options available with CBILS from these select lenders:
- ABN-AMRO Commercial Finance
- Calverton Finance
- Secure Trust Bank Commercial Finance
- Skipton Business Finance
For more information on financing options during this difficult time check with the Direct Gov website or refer with your bank to ensure that you are receiving enough financial support.