Coronavirus Business Interruption Loan Scheme: Update 25 March 2020

Coronavirus Business Interruption Loan Scheme (CBILS) is a government scheme, announced by The Chancellor at Budget 2020. The scheme is available to c.40 UK lenders, including many of the high street banks & regional investment funds. The purpose of the scheme is to help funders find comfort in lending to businesses adversely affected by the coronavirus.

Wattsford Commercial Finance remains as it always has done, to understand the market, the lender and to place the client’s loan request with the best possible lender, subject to their individual circumstances.

Rest assured that we will continue to monitor and understand the marketplace and that we will treat our clients fairly, arranging the best possible solution for you in this changing world.

To be eligible for the CBIL Scheme, your business:

• Had to be sound and financially strong prior to the pandemic
• Due to market conditions the business has experienced a downturn within the last 6 weeks
• Where the available security to offer up in support of a finance application may be lacking.

Loans are available for up to £5m, with the minimum varying from lender to lender.

CIBL support applies to the following 4 facility types:

• Term Loans – Up to 6 years.
• Asset Finance – Up to 6 years.
• Overdrafts – Up to 3 years.
• Invoice Finance – Up to 3 years.

To be eligible your business must fit the following criteria:

• Be UK-based in its business activity, with an 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 which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.

Please note: If a lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

For more information on how Wattsford Commercial Finance are working with businesses to raise finance in these challenging times Contact Us today or call 01609 531740.