The Coronavirus Business Interruption Loan Scheme - CBILS - Government backed lending scheme has been extended again; this time until 31st March.
It is unclear whether this deadline will be extended again – unlikely given the desired easing of restrictions following the latest lockdown and vaccination progress. The finance industry is expecting a replacement to the CBILS loan after the end of March, however, it is unknown whether this alternative will be as flexible and have such competitive terms as the original.
Why Take Out A CBILS Loan?
Tens of thousands of SME businesses have taken a CBILS loan for varying reasons… for some it has been a vital lifeline to carry them through the pandemic. For others it has provided essential cashflow to maximise growth opportunities. For others, it has been used as a cash reserve to protect against any forthcoming unknowns.
The long and the short of it is that a competitive and flexible loan is available to SMEs as financial support through this pandemic.
Should You Consider A CBILS Loan?
Perhaps you are considering a CBILS loan?
Or you are unclear as to what exactly they are?
Well, here’s all you need to know about the CBILS loan scheme to help you make an informed decision – a decision that must be made by March with your application submitted no later than 31st.
Do You Qualify For A CBILS Loan?
The loan is to help those SMEs who, as a result of the Covid pandemic, have lost income and suffered negative impacts on their cashflow.
Loans can be arranged for up to 25% of an SME’s annual turnover. As an independent broker, we have access to many providers of CBILS and we can arrange your CBILS loan usually much faster than if you went direct; arranging loans of up to £500k.
What’s more, here at CCF we boast an acceptance rate of 90%+ of all CBILS cases, compared to the national average of just 50%.
Benefits Of A CBILS Loan
The benefits of a CBILS loan above a traditional funding loan option are…
No repayments for the first 12 months
Extremely low rates – with some providers charging as little as 1.8% APR
No upfront charges
No early repayment penalties
No personal guarantees on CBILS up to £250k
No Interest For 12 Months
Another huge benefit to the CBILS loan is that the Government will pay the interest for the first 12 months. This means, given the fact there are no set up fees, should you pay your CBILS loan back within the first year it will not have cost you a penny.
Therefore, if your SME business is considering a cashflow injection in the form of a CBILS then you shouldn’t delay – you must have put forward your application by 31st March latest – in fact, some lenders will close applications earlier than this due to a backlog of applications.
Who Provides The CBILS Loan?
Providers authorised by the British Business Bank can provide a CBILS loan. The loan can be arranged directly – however, it is notoriously complex to arrange and application errors are resulting in declined applications. You can also apply through an authorised accredited broker, such as myself here at Capital Corporate Finance (CCF).
Authorised & Accredited Broker
As I previously mentioned, I am an accredited and authorised broker to arrange CBILS loans of up to £500k. As one of the country's truly independent brokers, I have access to all UK providers which means I am not bound to any targets, contracts or bonuses. This means only impartial, honest and unbiased advice is offered. My expertise – over 28 years – means I am fully aware of the lending criteria of UK finance providers and therefore what benchmarks an applicant must meet in order for their loan request to be approved, not denied.
The CBILS application can be arduous, with very precise details required, which many business owners find overwhelming and get wrong. Yet, we are experts in arranging SME finance, including CBILS, and thus the application process, when using CCF is simple, straightforward and stress free, as one such client, Your Studio, shares.
Apply For Your CBILS Loan By 31st March
To apply for your CBILS loan contact me today. I have a proven track record of successfully arranging CBILS for businesses just like yours. Call me, CCF Founder and Managing Director, Carole Roe, today – my direct line is 07785 596053 or you can email me on carole@capitalcorporate.co.uk
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