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What is the Coronavirus Business Interruption Loan Scheme?

Temporarily replacing the Enterprise Finance Guarantee Scheme, the CBILS aims to provide SMEs with easier access to the funds they need. Encompassing both traditional loans as well as alternative funding channels such as invoice and asset financing, favourable terms are offered to those that qualify.

Banks will not be allowed to request personal guarantees from individual company directors for borrowings of up to £250,000, instead security for the loans will be given by the government who will back 80% of the lending facility, thereby minimising the risk to the banks. Borrowing of up to £5m will be made available to businesses and no interest will be levied for the first twelve months of the agreement.

At UK Business Finance, our expert advisers can help you through the application process for obtaining a loan under the CBILS initiative, from locating the most appropriate lender, through to preparing and submitting the application.

Is CBILS right for my business?

While the CBILS does come with some generous terms, this scheme is not going to be right for every business, particularly those who are in immediate need of funding. At UK Business Finance we have access to over 50 specialist lenders – ranging from traditional high street banks, through to more niche lenders – who can help your business through the current circumstances.

We understand that once the need for funding becomes apparent, it is imperative that lending is secured in a timely manner in order for the funds to be put to use in stabilising the business. As a brand new scheme which is high in demand, CBILS may not be the most time-effective way of securing a loan. Banks are experiencing call volumes up to ten times higher than normal, as well as having a huge number of CBILS applications to work through; this is slowing the process down and delaying the funds reaching those businesses in need.

While the terms offered through CBILS may be attractive, if the funds cannot be injected into the business quickly enough, then this may not be the most appropriate scheme for your company.

What are the alternatives to CBILS?

The good news is that there are plenty of other ways to finance a business, and you can typically access funds much more quickly through traditional channels rather than through the CBILS lenders. If your funding application through CBILS is rejected, or you need quicker access to a loan than this scheme can provide, we can advise on the next best scenario through our wealth of expertise and access to over 50+ specialist lenders.

How UK Business Finance can help

We will provide impartial advice on the most appropriate funding channel for your businesses specific needs before sourcing competitive terms from across the lending arena. Using our established network of lenders we can source this funding quickly, putting your business in the best position possible during these challenging times.

Supporting your company

through COVID-19

The COVID-19 coronavirus crisis has had a devastating effect on businesses up and down the country, and indeed across the globe. Strict social distancing measures have led to countless businesses being forced to cease trading, while many others have seen business grind to a halt as demand dries up.

With incomings having taken a sudden and unexpected drop, the need to acquire emergency outside finance to plug this gap is going to be strongly felt by businesses up and down the country. In response to the crisis, the government has introduced a number of measures to better enable businesses to weather this storm. One of these is the introduction of the Coronavirus Business Interruption Loan Scheme (CBILS).

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There are a huge number of products and providers out there to help you fund your company, and at UK Business Finance we make it our mission to source the very best finance solution for your needs. Whether you need a traditional loan, are considering a form of invoice financing, or would like to raise funds against a company asset, we can help.

We work with over 50 commercial lenders, ranging from traditional high street banks through to alternative finance providers. This diverse portfolio of lenders allows us to help a range of businesses no matter their size, sector, or funding requirements. Our breadth across the market means we can take a comprehensive view of the options out there and secure the most competitive rate with a trusted provider. Each lender on our panel is carefully selected and we will only work with providers we know and trust to deliver sound funding solutions with exceptional customer service.

Some you can’t go directly so will need to use a broker; others you are able to make your application directly. However, we can scour the whole market ensuring you are getting the best finance package most appropriate to your circumstances and need for credit. Can save you a huge amount of time as you will not need to apply to each lender directly as well as ensuring you get the best rate, potentially saving you a huge amount of money over the duration of the borrowing term.

As specialists in the commercial funding arena, we can source the most appropriate finance for your business based on your bespoke needs. We will scour the market to pinpoint the best funding channel for you then work towards getting this secured with the lender. This process not only ensures your business is funded in the most cost-effective way, but also saves you considerable time as you do not have to apply to multiple lenders yourselves. Over the years we have built up close relationships with a variety of lenders meaning we know who to approach and how to approach them to get funding secured quickly and cost-effectively.

When you first speak to UK Business Finance, you will be given your own dedicated account manager who will take you through the whole process from application through to receiving the funds. Your adviser will begin by asking you various questions regarding your business and its funding needs. These answers will then inform their search as they scour the market for the most appropriate type of finance for your business. Your adviser will talk through their findings with you and present a short-list of lenders; they will also give their expert recommendation about which finance solution is best matched to your needs. Your account manager will then take care of the entire application process from filing the paperwork through to liaising with the lender on your behalf.

The amount you can borrow depends on a whole host of factors including what you need the funds for, how long your company has been running for, and the credit worthiness of your business. Regardless of your circumstances, UK Business Finance will always work towards getting you the money your business needs whether this is through a mainstream lender, a challenger bank, or by looking at more niche funding channels.

When it comes to business funding, we understand that time is of the essence. Our enviable market knowledge coupled with our extensive network of lenders means we are able to move quickly and secure the money you need, in some cases the money can be in your account the very same day. We know the right lenders to approach and will not waste time applying to finance providers who are unlikely to accept your application.

It is possible to obtain funding without a personal guarantee. Giving a personal guarantee significantly increases the likelihood of your application being successful and can often mean a lower interest rate being offered. However, you must think carefully about the personal repercussions providing this type of security before you go ahead.

UK Business Finance will not conduct a credit check; however, it is likely that your chosen lender will need to do this before advancing any funds. Conducting multiple credit checks can be damaging to your credit rating which is why applying to multiple lenders is not advised. Failing to keep up with your monthly repayments will negatively impact your credit rating, while maintaining your payments will likely give a boost to your credit record.

Of course. As businesses grow and evolve, it is only natural that its requirements for outside funding also change over time. Refinancing existing borrowing helps ensure your company is being financed in the most appropriate and cost-effective way depending on its own unique circumstances at any one time. This can save you money, improve cash flow, and mean your business is financially ready to seize future opportunities or embark on an expansion project.

Depending on the type of finance you take out you may have the option to repay the amount early; this could potentially save you money in the long-term. If the option for early repayment is important to you then you are strongly advised to make this clear to your UK Business Finance adviser who will be able to source the most appropriate funding channel for you.

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