Act now to make your CBILS application

We've had some really positive conversations with the banks about the CBILS scheme, and it is clear that they are willing to lend to those businesses who qualify. But it also stands out from those conversations, that they all have the same message - Act now and do not put off making your application.

It was announced by the Chancellor on 17 December 2020 that the CBILS scheme would be extended to 31 March 2021

We have already encountered real life examples where clients have struggled to access the loans because they did not present the information in a format that enables the funders to lend. We have a dedicated team who are in daily communication with our banking contacts, meaning we are exceptionally well placed to help businesses get the CBIL they need and as quickly as possible.

WHY YOU SHOULD CONSIDER CBILS NOW

Timings –
If you do have up to date management information, it is likely to take 2-3 weeks from application to cash being in your bank account. If you don’t have up to date management information available, we expect the application process, including getting management information up to date, to be at least 4 weeks. Given the volume of applications funders are dealing with (particularly the banks), the message is you need to start thinking how a CBILS loan would ease your cash position well in advance. You need to present reliable information in an easy to understand format, so the lenders can process the application quickly.
A CBILS loan provides cash headroom for very little cost and little long term commitment -
The government will pay the interest CBILS funding for the first 12 months and our understanding is that the facilities will carry no early repayment charges. This gives great flexibility for businesses that know they may struggle over the coming months but expect normal trading to pick up quickly, enabling the CBILS loan to be repaid.
CBILS can help manage a reduction in debtor finance –
The current crisis is impacting on cash collection for many of our clients. The general rule is to try and speak to your lenders and ask for things such as capital holiday repayments or increase in overdraft facilities. If you have exhausted these options and you have an invoice discounting or factoring facility, you need to start thinking of the cash implications of your current facility. If sales reduce or customers delay payments (and therefore more of your debts become old and ineligible) the available drawdown of your facility will reduce and impact on available cash very quickly. You may need a cash injection from a term loan to effectively plug this gap.
Credit may tighten –
Although the criteria required for funding under CBILS have been relaxed, the credit approval process may well tighten in the future as the funders look internally at their exposure and risk. Now is a good time to access support to ensure you have sufficient cash headroom.