What we know about The Coronavirus Business Interruption Loan Scheme (CBILS)
This has now launched.
The British Business Bank’s advice is to contact your own bank/lender in the first instance (check out their website). We can see that Lloyds for instance, has already published some helpful application information.
The CBILS requires a very formal application process and mirrors that of an application for a bank loan under ‘normal’ circumstances. The official wording is “have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty”.
As a minimum, you will need to provide your business plan, and details of profits and loss, as well as details about how you’re planning to use the loan. Further details (from a behind the scenes view point) on what may be taken into consideration by lenders can be found at https://www.fca.org.uk/firms/business-loans-which-coronavirus-business-interruption-loan-scheme-applies.
Please contact us if you would like us to put together a pack of information for your lender’s consideration.
The loans are available to both limited companies and unincorporated businesses (sole traders and partnerships). If you are looking for short term finance, we are aware that banks are happy to consider many options with their customers, so please do talk to your bank about all available options, should this be something you are considering. Failing that, you may want to approach other lenders to discuss available credit.
If you are new to Revel and are keen to find out more, please call our consultant Will Bolter FCCA MAAT ATT (our designated COVID-19 response advisor) on 07379 451484 or contact us by email here.