The Coronavirus Business Interruption Loan Scheme (CBILS), has proved to be extremely beneficial to numerous businesses across the UK. Launched earlier this year, CBILS was designed to provide financial support to SMEs that have been impacted by COVID-19 and seen their cashflow disrupted. The effects of the pandemic continue to present challenges to businesses and the future still looks uncertain, however, the scheme is due to end on 30th September, and any applications for finance need to have been made by that date.
Compass Business Finance are encouraging businesses to look at their working capital requirements and any planned investments that they may have over the next 12-18 months now, whilst CBILS is still available. Offers of finance via the scheme are valid for up to 6-months, without any obligation. Should an offer be taken up, all fees and interest payments are covered for you for the first 12-months, with some offers having no repayments at all during that time.
David Bunker, director of Compass commented that, “Depending on the term of the finance, having the first 12-months of interest, as well as any upfront fees covered can represent savings of up to 56% against what you’d have paid previously or will have to pay once the scheme finishes – this is why we’re encouraging people to contact us now.”
Businesses are utilising CBILS in a multitude of different ways to ensure their future viability and success, with many taking advantage of multiple loans of varying types whilst remaining under the £5 million limit. Improved cash flow through traditional loans, refinancing agreements and finance for new assets have all formed important parts of business strategies during the pandemic.
Whether a business has already received finance through CBILS or not, now is the time to take another look at what you may need and talk to a lender such as Compass to see what is available. Once a business is approved for finance and an offer made, they have up to 6-months to decide whether they need it.