Business Interruption Loan Scheme

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Amid the ongoing Cornavirus crisis, the government yesterday unveiled a series of measures to help businesses cope with the almost inevitable disruption this will cause and as part of this month’s budget announcement. One of these was the introduction of  the Coronavirus Business Interruption Loan Scheme (CBILS).

This scheme will take the place of the current Enterprise Finance Guarantee (EFG) over the coming weeks and aims to provide businesses with easier access to finance during these challenging times.

While the borrower will remain fully liable for repayment of the facility, security to the lender will be provided by the government who will guarantee 80% of the amount borrowed – which will make this an attractive proposition to lender and borrower alike. A range of revolving and term finance options will be made available through CBILS, including:

Business loans and asset finance (terms up to ten years)

Overdrafts

Invoice finance and revolving facilities (terms up to three years)

CBILS is aimed at small UK businesses which are otherwise viable, yet experiencing cash flow problems and interruption to trade due to the escalating spread of COVID-19. Eligibility, therefore, is limited to those companies with an annual turnover not exceeding £41 million and those without adequate security to obtain funding directly from the lender under ordinary circumstances.

We have has fostered close relationships with a range of lenders and can assist eligible companies in accessing finance from between £1,000 to up to £1.2 million, depending on their circumstances and funding requirements.

As trusted advisers we regulary work with these companies to provide specialist input, adding value to the services they offer, and ensuring our clients receive the best advice possible during challenging times.

We have taken the time to understand our client’s business and its finance requirements, we can provide expert advisers who will search the lending market to source the most appropriate funding channel satisfying both the short-term and long-term needs of the company in the most cost-effective and time-efficient manner possible.