Rules Relaxed on CBILS and Bounceback Loans

posted in: Community, Finance 0

Dear Members,

It looks as if the “Undertaking in Difficulty” rules are being relaxed

 

Please find Update below from Sharon Cook <sharoncook@choicebusinessloans.co.uk>

We are still in the middle of CBILS and BBLs, with more lenders joining the party. We are surprised (or not) at the time it has taken some lenders to become active. With September looming we wonder if the CBILS scheme will be extended.

Some quick CBILS stats for you:

£12.65 bn facilities approved. 57234 facilities approved. 115941 applications received.

I think it’s fair to say the scheme has been successful, but it still feels like many businesses have fallen short of the criteria.

The biggest challenge we have seen in the ‘undertaking in difficulty’ rule under state aid rules. Effectively if you filed a loss last year, despite the reason, and even if the business has clearly picked up, you still wont qualify for a CBILS. As of Friday this week those rules are being significantly relaxed which should help more businesses.

We also find ourselves doing CBILS for Asset Finance, Invoice Finance, large revolving facilities, development finance and bridging finance.

Interestingly this period has inspired lenders to become more creative, or launch new products earlier. (CBILS or not)

Cash advances for online retailers.

Revolving Credit lines – Secured (cheaper) and Unsecured.

Purchase order finance – For those selling to large bluechips or government agencies.

Secured 10 year loans.

Trade Finance and Supply Chain Finance – Lowering the criteria to access.

The good news is lending is still VERY much alive and we are keeping our panel up to date with all the new products that are available.

Please feel free to get in touch if you have any questions, or if a client of yours needs some help.

 

 

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