What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
The CBILS is a new scheme that can provide facilities for a range of Business Finance products to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
The CBILS scheme provides accredited lenders with a government-backed guarantee enabling lenders to provide Asset Finance facilities to SMEs to support their investment in new and used assets. In the absence of the CBILS scheme, those SMEs would ordinarily have difficulty raising such finance due to the impacts of COVID-19 as they would likely fall outside of a lenders normal appetite.
Alongside this, the customer also benefits from no guarantee fee to access the scheme and interest and other fees will be covered by the Government for the first 12 months.
CBILS Criteria & Eligibility
- Be UK based in its business activity with annual turnover of no more than £45m
- Application must be for business purposes
- Business must generate more than 50% of its turnover from trading activity
- CBILS-backed facility will be used to support primarily trading in the UK
- Borrow between £50k and £250k*
- Finance terms between 12 and 60 months
- Business not in financial difficulty prior to the COVID-19 outbreak
- Agreement types considered: hire purchase, finance lease, sale and HP/lease back only
- Refinance available, focussed on suitable existing unencumbered assets. Assets subject to finance can be considered for refinance to release working capital on more cashflow friendly terms
- Unsecured business loans also available, please contact us for further information
*For transactions over £250k, please contact us for more information.
- Refinance of an existing asset finance facility is ineligible with the same lender
- Hire purchase or leasing of cars or other vehicles subject to personal taxation
- Variable rate deals
- Direct financing of specific export activity
- Operating Lease
What do customers need to know?
- The borrower remains liable for 100% of the outstanding balance, regardless of the presence of the guarantee.
- The scheme does not reduce the liability of any personal guarantor related to the CBILS-supported facility.
- If the borrower defaults on the facility (fails to make repayments as and when they fall due), the lender is entitled to seek to recover the full amount outstanding from the borrower.
- The Government will make a Business Interruption Payment to help cover the majority of interest and any lender-levied fees in the first 12 months of any CBILS facility, so smaller businesses will benefit from lower upfront costs and lower initial repayments.
If your business is in need a loan, we are here to help. Get the funding you need by calling us on 0800 999 69 62 or emailing us. Alternatively, just click on the link below and complete our short form.
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