Wylie & Bisset urges businesses to submit applications for CBILS ahead of looming deadline
While the British Business Bank has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended by two months to 30th November 2020 for lenders, Chartered Accountants Wylie & Bisset has reminded businesses that they still need to submit applications to lenders by 30th September.
The British Business Bank’s decision to extend the scheme has been welcomed by those many businesses yet to consider their longer-term cashflow requirements and CBILS has been particularly attractive.
Gerald McLaughlin, corporate finance partner at Wylie & Bisset, said: “Most CBILS facilities include some capital repayment holidays, low interest rates compared to most other forms of commercial lending, and there are no personal guarantees required by lenders – businesses can have more than one loan under CBILS, and this can be with the same or another lender – up to each £250k of lending.
“The maximum amount a business can borrow under this scheme is 25% of a business’ pre-Covid turnover and it must be able to demonstrate it was viable before the lockdown. We can help you assess whether you meet the criteria.”
As the scheme has been rolled out over the past few months, more accredited lenders have launched products.
“We have access to the wide range of lenders and products available in the market and can assist you to prepare your application,” said McLaughlin.
“We can produce cashflow forecasts if you are concerned about your future financial commitments and whether your business’ projected profitability can ensure you can meet these obligations and be sufficient to fund growth.
“Many businesses have lost cash reserves and the natural working capital cycle between your debtors and creditors is stretched, so get in touch for advice about how you can invest to grow your business again. We are part of a campaign across the accountancy profession to ensure we #LeaveNoBusinessBehind, so please do speak to us.
“CBILS may yet be extended further in the coming months, or it may develop into another product, but as nothing is certain in this current climate, we would advise businesses take action sooner rather than later while we know this scheme remains available.
“It can certainly provide more attractive terms than many other forms of commercial lending which you may be restricted to if you need to secure facilities at short notice once CBILS has concluded.”