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.
How it works
British Business Bank operates CBILS via its accredited lenders. There are over 40 of these lenders currently working to provide finance. They include:
- high-street banks
- challenger banks
- asset-based lenders
- smaller specialist local lenders
- A lender can provide up to £5 million in the form of:
- term loans
- invoice finance
- asset finance
- CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending.
How do I apply?
In the first instance you are encouraged to approach your existing bank, as we’ve been advised that the banks are prioritising their help towards their existing customers.
However, if you work with a bank that is not a part of the scheme you can visit our funding page and begin an application via Capitalise who will approach third-party lenders under the CBILS scheme on your behalf. You can do that directly here Start Funding Search
What information will I require?
Because of the current climate we’ve been advised by the banks and other lenders that the to handle an initial application they are going to require more information than usual. This will likely include:
Last 3 years full accounts with detailed P&L
Last 12 months business bank statements (Lloyds Bank usually need 6 months personal as well)
Up to date management accounts
Aged debtor and creditor lists
Confirmation of any outstanding debt (provider, term, repayment)
Statement of personal assets, liabilities, income and expenditure from all Directors
Home addresses of all directors/ shareholders
Paragraph on how Covid-19 has affected the business and what the funds will specifically be used for.
In addition to these we’re informed that many lenders are drilling down further and asking questions, along the lines of:
- What is the purpose of the requested facility (short term cash flow/longer term cash injection) and how will the funds be specifically used to address the shortfall caused due to COVID-19?
- Please provide details on the amount of the borrowing request and how this amount has been derived. eg. How much are you requesting and why? Please explain how you have calculated the amount of the request, in what area of your business has the COVID 19 had its impact and how will the monies be used to help the business through this period of disruption. How do you feel the borrowing will support the longevity of the business?
- On what basis has the amount been calculated? Has this been based on existing (pre virus) income and expenditure levels or future levels? If future, what assumptions are being used? Is it likely further borrowing at a later date will be required?
- When the Pandemic is over, how long do you think it will take your business to recover? What challenges do you expect to see e.g. future loss of contracts/staff availability?
- What changes are the business making in the short and longer term to help drive business performance back to either pre virus levels or beyond?
- Please provide the current number of Employees
- What are the costs you currently have to pay in regard to running the business e.g. staffing costs, business premises costs, stock and or/other debt costs and what are you doing to reduce these?
- What have you been able to access in terms of government schemes in response to Covid-19 (Grants/rates non-payment/VAT deferral/Time to pay arrangements)? - please provide details
Help & Advice
Our main piece of advice here would be to have ALL of the information r3eady to go to the lender/broker when you first upload an application. This will mean that your application will reach the front of the queue quicker, and you’ll be in a position to receive funds sooner.
If you do need any assistance with any elements of the above please drop us a message on Hello@CompleteHQ.co.uk