What is CBILS?
CBILS is a government-backed scheme providing facilities of up to £5 million for smaller businesses across the UK that are experiencing lost or deferred revenue, leading to disruptions to their cash-flow. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.
Do you need help or advice accessing a loan between £50,001 and £5M?
Whilst the CBILS core principles are fixed, there are over 100 accredited lenders with widely differing criteria & appetite The application process can be complex and financial data needs to be presented correctly to maximise your chances of success.
We are NACFB-affiliated and can help guide you through the application process & an understanding of your best options.
(Note:for loans of £2000 to £50,000 the Bounce Back Loan Scheme (BBLS) is by far the quickest, easiest & cheapest option. You should apply through your own bank as the process is minimal/simple & the loan payment very fast. Be aware, however, this may well preclude or limit your access to other CBILS Loans/Hire Purchase/Leasing).
Key Features of CBILS
- Loans of £50,001 to £5 million
- Term loans, overdrafts, asset finance, invoice finance, refinance
- No personal guarantees for facilities under £250,000
- Term of 3 to 6 years depending on facility type & lender
- Government guarantee of 80% of debt to lender ( Note : borrower remains 100% liable for debt)
- Interest- free for first 12 months & no lender fees
Your business must :
- Be UK-based in its business activity
- Have an annual turnover of no more than £45 million
- Generate more than 50% of its turnover from UK-based trading activity
- Self-certify to having been adversely impacted by Coronavirus
- Not have been classed as a business in difficulty as at 31 December 2019
- Have a proposal which would have been financially viable prior to the impact of Coronavirus
This will vary depending on the lender & type of finance sought (loan/asset finance/invoice finance), but as a minimum:
- Full sets of last 2 years accounts
- Up to date management accounts
- 3-6 months bank statements
- Purpose of loan
- Detail of how Coronavirus has impacted the business
Each lender makes its own decision on whether or not accept a proposal, and what products (loan/asset finance/invoice finance) & terms (loan amount & repayment period) it wants to offer. These are unprecedented times, with many businesses struggling, but there is a lot of accessible help out there.