Deadline for the Coronavirus Business Interruption Loan Schemes (CBILS) is 30 September 2020

Deadline for the Coronavirus Business Interruption Loan Schemes (CBILS) is 30 September 2020

You may or may not be aware, that the Governments’ CBILS aid is closing on 30 September 2020 – Less than two weeks away!

To be able to obtain aid from this scheme you will need to have had your application registered with a CBILS provider before the 30 September deadline, with a further 2 months for the provider to process the application.

It should be noted that a CBIL Scheme would be free from interest and capital repayments for the first 12 months and there is reduced security required, with no Directors or Personal Guarantee exposure.

Other ways firms are utilising CBILS are:

  • To Refinance existing Debt to reduce Personal/Director Guarantee exposure;
  • Invoice Finance under CBILS – as fees and interest are covered by the government for the first 12 months, businesses who have or are about to have their supplier credit limit reduced, creating a gap in cash flow which the Invoice Financing fills;
  • Refinance of Invoice Finance facilities (subject to any early repayment charges) to benefit from interest free period;
  • Existing bridging facilities or development finance facilities for clients who have been delayed due to COVID, providing an extension to the borrowing term and/or raising further capital where the value has increased;
  • Refinancing of existing Assets with Asset Finance under CBILS, again with no interest/repayments for a year and potentially extending the term;
  • Financing of new equipment to improve your ability to trade, having been affected by COVID.

Note that under the CBIL Scheme the loan is limited to 25% of the 2019 turnover

If you are interested in applying for the CBIL Scheme please contact us, noting that we and the providers are starting to see a large increase in the number of applications made, and as such we can not guarantee that all applications made will be registered with the required providers.

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Deadline for the Coronavirus Business Interruption Loan Schemes (CBILS) is 30 September 2020