- Commercial Finance
This morning we're officially launching our new Coronavirus Business Interruptions Loan Scheme (CBILS) Support Service, aimed at helping business owners seeking the government-backed emergency finance.
CBILS refers to the part of the government’s Coronavirus rescue package set up to aid UK businesses facing financial difficulties as a result of the current situation. Just a couple of weeks on from its own launch, and it has been a bumpy start to proceedings for the scheme, initially facing a wave of criticism.
This came following applicants stating that the banks involved in the scheme had been making it difficult, or in many cases impossible, to obtain the government support they need.
Now, as we enter week three of isolation, a spike in CBILS applicants is expected. There’s been speculation about when the funding due from another element of the government’s support package, the Job Retention Scheme, with worries that payments reach company bank accounts until as late as June. This has led to a spike in Commercial Finance applications across the country, with many seeing this as the only sure way for survival.
Our Commercial Finance advisors have been as busy as ever since the CBILS was launched. With more enquiries on the horizon, we’ve taken appropriate steps to expand the team to ensure we can continue to be be by your side (metaphorically!) throughout the process, making things as smooth as possible for you.
How can we help?
- Your first step will be to contact your own bank;
- If you find that they cannot support your request or can only offer restrictive terms, there are more than 40 accredited lenders across the UK;
- We can search the market for you using our network of commercial banking relationships and contacts;
- Prosperity Wealth, Independent Financial Advisers will help support you through the application process and work with the lender on your behalf.
Who is eligible?
- Your business must be UK based with annual turnover of up to £45m;
- More than 50% of this turnover must be generated from trading activities;
- Your business must have been adversely affected by the Coronavirus;
- Your CBILS facility must be to support primarily trading in the UK.
What does the loan scheme offer?
- Loans, overdrafts, invoice finance and asset finance of up to £5m are available;
- The lender is given a government backed guarantee to encourage more lending;
- Personal guarantees on facilities up to £250,000 are not required;
- Personal guarantees on facilities over £250,000 may be required at the lender’s discretion;
- The maximum term of a facility is 6 years (loans and asset finance) or 3 years (overdrafts and invoice finance);
- The government will cover the first 12 months of interest and any lender charges.
What do we charge for this service?
- We charge a minimum fee of £995 and we will offset any lender introduction fees Prosperity Wealth receive from this amount;
- There will only be a fee charged if we are successful in securing funds for your business.
These are testing times, and despite the criticism, the CBILS has been set up with the best intentions in mind. If you’re a business owner or professional connection reading this and you feel that either you or a business that you work with might be able to benefit from a chat with our Commercial Finance team, please don’t hesitate to get in touch.
How to get in touch?
Please email all enquiries to: email@example.com
Or please call one of our commercial managers:
Neil Nisbet: 07971442948
Steph Cooper: 07975924121
#CommercialFinance #CBILS #CommercialLending #CommercialBanking #FinancialAdvice #FinancialSupportForBusinessOwners