In these unprecedented times, many small and medium-sized businesses are reporting significant problems with cash flow resulting from the COVID19 Coronavirus outbreak.
The Government has promised a multi-billion pound package of measures to help SMEs with a promise of further financial support in the coming weeks and months.
Coronavirus Business Interruption Loan Scheme
UK-based SME businesses with an annual turnover of £45 million or below, are able to apply through the British Business Bank, which will lend eligible businesses between £1,000 and £5 million.
The Government will absorb interest costs in these loans for the first 12 months. It is important to remember that the borrower is ultimately liable for the debt.
Lenders may require a personal guarantee where more than £250,000 is borrowed, however, this cannot be a main residence and where the business defaults, the bank can only seek to recover 20 per cent of the outstanding balance after the sale of business assets.
You should seek professional advice, particularly if you are asked to provide security for a CBILS loan.
To apply for a loan under the scheme, please visit: www.british-business-bank.co.uk/ ourpartners/coronavirus-business-interruptionloan-scheme-cbils/accredited-lenders
Using the tool on the website, you can narrow down lenders by region and types of loan. You will then need to contact that lender using the details provided by the British Business Bank to proceed with your application, via the lender’s own process.
Why is cash flow forecasting vital to secure a CBILS loan?
It is important to understand that lenders will require you to provide evidence that your business is sustainable in the longer-term.
You will be expected to provide:

• A review of the recent financial performance of the business. You will need to provide cash flow forecasts, recent financial statements, and management accounts that show the fiscal health of your business prior to the Coronavirus outbreak.

  We are working with clients to prepare his supporting information, please contact us if we can help you.

  The projected financial performance of the business for the current and next financial year.
  This is likely to include:

  a) The projected performance based on “normal” pre-Coronavirus trading
  b) The expected performance of your business based on the impact of the Coronavirus crisis

In order to ensure that your business stands the best chance of successfully securing a CBILS loan, you need to ensure that you have accurate business documentation.
We are able to assist you with detailed accounts for the last two years, plus up to date cash flow forecasts, management accounts, performance forecasts for the current and next financial year and any other supporting documents you will need to support your application.
Please contact us for help and practical support.