Coronavirus Business Interruption Loan Scheme extended

The British Business Bank has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended for lenders by two months to 30 November 2020. So far, applications still have to be submitted to lenders by businesses by 30 September, although there are many campaigning for this also to be extended.

This decision has been welcomed as many businesses have not yet considered their longer-term future cash flow requirements and this scheme is particularly attractive. Most CBILS facilities include some capital repayment holidays, low interest rates compared to most other forms of commercial lending, and there are no personal guarantees required for up to £250k of lending. 

The maximum amount a business can borrow under this scheme is 25% of its pre-Covid turnover and it must be able to demonstrate it was viable before the lockdown. We can help you assess whether your business meets the required criteria. 

As the scheme has been rolled out over the past few months, more accredited lenders have launched products. We are now confident that we have access to the widest possible range of lenders and products available in the market and are well-placed to assist you with preparing your application. 

We can also produce cash flow forecasts if you are concerned about your future financial commitments and whether your business's projected profitability will be able to meet these obligations, as well as being available to fund growth.

Many businesses have lost cash reserves and the natural working capital cycle between your debtors and creditors is stretched, so do get in touch on 01273 480480 if you would like some help with understanding how you can invest to grow your business again. We are part of a campaign across the accountancy profession to ensure we #LeaveNoBusinessBehind, so please do speak to us.

CBILS may yet be extended again in the coming months, or it may develop into another product. As nothing is certain in this current climate, it makes sense to take action sooner rather than later whilst we know this scheme is still available. It can certainly provide much more attractive terms than other forms of commercial lending which you may be restricted to if you need facilities at short notice once this scheme has ended.