Still confused about the Coronavirus Business Interruption Loan Scheme (CBILS) and how it could help support your business and investment plans? You’re not alone.
We’re finding many businesses are not aware of the full range of features and benefits of the scheme and how they could take further advantage of it, so we’ve pulled together a few key points as a response to some of the most commonly asked questions.
Points to note…
1. If you’re likely to require additional working capital or are considering purchasing any additional equipment over the next 12-18 months you can make significant savings by arranging the finance now.
2. CBILS is available to businesses that have been impacted by Covid-19, regardless of whether that impact has been positive or negative.
3. If you have taken a Bounce Back Loan (BBL) but found the funding insufficient for your needs, CBILS is still available as an alternative option providing you pay back the BBL (which can be done using the CBILS finance).
4. You can take out multiple finance agreements utilising CBILS up to a maximum of £5 million.
5. Applications must be made before 31st March 2021, however, offers of finance are valid for up to 6-months (depending on the type of finance sought), without any obligation.
Depending on the term of the finance, having the first 12-months of interest, as well as any upfront fees covered represents savings of up to 56% on a 36-month or 100% on a 12-month terms against what you’d have paid previously.
Know your options…
There are 3 significant CBILS offerings available from Compass, either separately or as part of a package:
Loans of up to £500,000* over 2-5 years with the first 12-months capital and interest free. Decisions are usually given c.48 hours from submitting all the required information.
Refinance your existing agreements and unencumbered assets with the first 12-months interest paid, to release cash and provide savings on monthly repayments.
Asset Finance for new and used machinery with 12-months interest free. Once you receive an offer of finance, you have up to 6-months to take the facility up if you wish to, as a result we’re finding many companies are looking at their next 12-18 month investment plans with a view to take advantage of the savings CBILS provides.
Whether you’ve already received finance through CBILS via us or another lender, now’s the time to take another look at what you may need.
*If you require more than £500,000 please contact us, CBILS allows for loans of up to £5m.