Has your business been interrupted by coronvirus? Have you experienced lost or deferred revenue? disruption to your cashlfow? We can help.
In the 2020 budget, the chancellor announced a new scheme which provides loan facilities of up to £5m for smaller businesses across the UK, who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
Are you eligible?
Smaller businesses from all sectors can apply for the full amount of the facility. To be eligible for a facility under CBILS, an SME must:
- Be UK-based in its business activity, with annual turnover of no more than £45m
- Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for the provision of finance will enable the business to trade out of any short-to-medium term difficulty.
- Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.
- 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance.
- No guarantee fee for SMEs to access the scheme: No fee for smaller businesses.
- Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so businesses will benefit from no upfront costs and lower initial repayments.
- Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
- Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
Please note – The borrower always remains 100% liable for the debt.
Brooklands Commercial Finance has been arranging business finance for the last 18 years, and will continue to use our expertise & banking connections to assist new & existing customers through these uncertain times.
To submit an application for ‘Coronavirus Business Disruption Loan’, please contact us using the form below and one of our specialist business advisors will be in contact.
Contact Brooklands Commercial Finance