CBILS – Very Important SME Updates
Finance, working capital and cash reserves are essential for a business to survive. Cashflow injections help struggling businesses service, thriving businesses grow and offer peace of mind for any future unknowns. That’s why so many UK SMEs have taken advantage of the Government backed Coronavirus Business Interruption Loan – CBILS.
What Is A CBILS Loan?
A CBILS loan is a Government back lending scheme that provides cash to SMEs who have suffered a loss of business due to the pandemic.
The loan is available, an amount of up to 25% of a business’s annual turnover, with the Government paying the first 12 months interest. Rates are especially low and there are no set up fees or early repayment charges.
Due to the excellent terms these loans have been hugely popular with SMEs within all industries.
CBILS Application Extension Cut Off Date
You may be aware that the Government backed CBILS loan scheme has been extended again – this time until 31st March.
Therefore, as an SME busines owner, you have around 6 weeks left to apply. However, be aware, do not leave it until 31st March as some lenders are expected to close their doors to new applications before this due to high demand.
To take advantage of these flexible, low rate loans it is best to get the ball rolling and apply NOW!
Will There Be Additional Government Lending After CBILS Ends?
As yet, nothing is for certain. The Government are working on a CBILS successor but no details as yet have been released. There is concern that the terms could be less favourable, higher rates may be applicable and interest may not be funded by the Government in the first instance. This is why you should apply for your SME CBILS loan NOW while you still can.
Benefits to a CBILS loan are:
- Low rates – some lenders offering loans from as little as 1.8%APR
- No upfront fee
- No early repayment charges
- No personal guarantees on loans up to £250k
- Interest free for the first 12 months
Why Take A CBILS Loan?
CBILS loans can offer an invaluable cash injection to businesses who have experienced a loss of income during the Covid pandemic. Other businesses are using their CBILS funding to enable expansion and growth, whilst other businesses are simply using the CBILS as a cost effect buffer to use in the future should they
How To Arrange Your CBILS
You can arrange your CBILS application in two ways.
1. You can go direct to a provider, however, the application process is complex, complicated and confusing. We know this as we speak to many SMEs, who, having made errors in their application, have seen their funding denied.
2. The other way is to use an authorised Broker, such as Cashflow Bridge. We are approved to arrange CBILS loans for up to £500k, boasting a success rate of 90% (compared to the national average of just 50%). Why not read Health Connections first hand experience of using us to arrange their CBILS loan?
Our Founder, Carole Roe, and her team, including Kevin Weaver, Managing Director, can be contacted directly for further information on arranging your CBILS loan.