ABL Business Ltd

Helping businesses get access to CBILS

  • We can help you access the right CBILS facility
  • Practical application templates and support
  • Keeping you updated with the latest government policy and information

Finance that works for your business

The British Business Bank is accrediting new lenders regularly

Structuring Successful CBILS Applications - Alex Explains

The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.

 

As commercial finance brokers we can help you apply for CBILS from one of the lenders.

Key information from the British Business Bank

  • Up to £5m facility: available on repayment terms of up to six years.
  • 80% guarantee: government-backed, partial guarantee (80%).
  • No guarantee fee for SMEs to access the scheme:
  • No fee for smaller businesses. Lenders will pay a fee to access the scheme.
  • Interest and fees paid by Government for 12 months.
  • Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under.
  • For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will
  • The borrower always remains 100% liable for the debt

The Impact on the Business

When applying for one of the government loans you need to include statement that includes the impact that Coronavirus has had on the business. This could include things like:

  • Actions already taken, or those you are considering, to mitigate the impact including the extent to which you have explored other funding options or government support (eg furloughing of employees, VAT deferred payment, rates relief etc).
  • A summary of the amount that the business needs to borrow, how such funds will be utilised and the period over which repayments will be made. (2 – 6 years)

We have a template for this if anyone would like to utilise it please click here to view it.

 

Preparing For A CBILS Application

The financial landscape has changed an awful lot since the announcement of the Coronavirus Business Interruption Loan scheme was made by Rishi Sunak on 23rd March 2020.

With changes of terms, personal guarantee cut off points, lenders exiting and new ones coming into the market.

Because under CBILS there are a number of additional products such as Overdrafts, Invoice Finance and Asset Finance that may be more beneficial to the business than a standard loan. We suggest that all businesses approach their business banks initially to explore funding options before looking to access CBILS or BBLs funding elsewhere. But we are always happy to have a quick chat and provide our thoughts on the best way forward.

For businesses that are not eligible for CBILS there are still ways for them to access commercial finance. We are best placed to put together a package to suit your business.

 

We are closely monitoring the situation and the financial landscape as well as keeping in contact with lenders, the British Business Bank and the CBI to stay on top of lending criteria, products, rates and availability.

 

By working with us this leaves you, the business owner and your accountant, time to focus on your business  and all the other issues you are facing whilst we focus on getting you the cash your business needs.

frequently asked questions

Businesses must :

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender:
    • would consider viable, were it not for the COVID-19 pandemic
    • believes will enable you to trade out of any short-term to medium-term difficulty

For businesses that are not eligible for CBILS there are still many options available for them to get access to commercial finance. 

We urge businesses owners and their advisors to speak to an NACFB and FCA authorised broker before making any decisions because now is not the time to rely on poor advice.

  • The government will increase the Business Rates retail discount to 100% for one year, expand it to the leisure and hospitality sectors, and also increase the planned rates discount for pubs to £5,000.
  • Additional funding will be provided to local authorities to  support small businesses that already pay little or no Business Rates due to the Small Business Rate Relief (SBBR); this will provide a one-off grant of £10,000 to eligible businesses.
  • Businesses and self-employed people in financial distress, who also have outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service

Get your free asset finance quote now

Fill out the form below, and one of our experts will call you back to discuss the right finance options for your business.

The team at ABL is committed to helping businesses get access to the finance they need to. As a team we are currently working from home but we are still on hand to help you. You can contact any member of the team on:

Andy:07824 391 007

Alex: 07903 769 037

Luke:07415 864 567

Zac:07780 463 354