The British Business Bank has put together a scheme to assist small businesses suffering from cashflow disruptions due to lost or deferred revenues. CBILS supports a wide range of funding facilities including asset finance facilities, term loans and invoice finance.
Lenders are provided with a government backed guarantee opening facilities to a wider range of SME’s. The scheme went live on Monday 23rd March and will initially run for six months.
Does my business qualify?
- Loan guarantees have been extended to all viable businesses
- Can only be used for business purposes
- Maximum borrowing amount £5m for businesses with an annual turnover up to £45m
- Maximum borrowing amount £25m for businesses with an annual turnover between £45m - £500m
- Guarantee backed loans to be offered at commercial rates of interest
- Trading turnover must be greater than 50%
- Facility can only support UK based trading businesses
- Have a borrowing proposal which the lender would consider viable, were it not for the covid-19 pandemic
- The lender believes it will enable you to trade out of any short-term to medium-term difficulty
- Is the facility unlimited?
- No. CBILS will guarantee facilities of up to £25m dependant on turnover. repayment terms are up to six years for asset finance and term loans. revolving facilities, such as overdrafts and invoice finance, terms are available on repayment terms of up to three years.
- Personal guarantees will be capped at 20% of outstanding loan balance for loans over £250,000
How do i apply?
Call Liquid Corporate Finance, in the first instance, on 0333 772 1782. We will discuss your requirements and will then approach our panel of accredited CBILS lenders with your proposal.
If the accredited lender is able to offer finance on normal commercial terms without the need to make use of the CBILS scheme, they will do so. Business from any sector can apply. however, there are some exceptions.