• Carrie Stokes

Coronavirus Business interruption Loan scheme (CBILS)

This blog post is to summarise the help and support under CBILS, if cashflow is a concern we can help you source funding, complete applications and look at your options.


If you need any help please get in touch hello@carriestokes.co.uk or 01952 462693


Above all else stay safe!

Carrie


What is it

This is a government loan scheme that is designed to provide financial support to businesses that have had an adverse effect on cash as a result of COVID-19.

This is a loan so it will have to be paid back.

There are 40 lenders that can provide finance of up to £5million in the form of:

· Term loans

· Overdrafts

· Invoice finance

· Asset finance


Full details of the scheme can be found here:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/


Who qualifies?

Any UK business can apply subject to the following criteria:

· The application must be for business purposes

· Turnover must be below £45m

· 50% of the turnover must be generated from trading activity

· The application is to support trading in the UK

· The maximum borrowing is £5m with terms of up to six years for loans and asset finance and three years for overdrafts and invoice finance

How do I apply

You can either contact your bank or we can make an application on your behalf via our partnership with capitalise.


FAQ’s

What do I need to apply?

Depending on the lender you will need to provide:

· The last 4 quarters VAT returns

· The last 3 years accounts

· Management accounts

· Forecasts


How long will it take?

Unsecured funding can take 6-8 weeks, secured funding can take up to 12 weeks.


Why am I being asked to take a normal loan first?

Part of the criteria of the scheme is that you can’t get borrowing on normal commercial terms.


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