The Coronavirus Business Interruption Loan Scheme (CBILS) is a potential option if you need funds to be able to pay yourself until the CJRS pays out in late April.
Facilities are available under CBILS for £1,000 up to £5 million, subject to a lender’s criteria. CBILS will be interest-free for the first 12 months, as the Government has guaranteed to cover these payments during this period.
CBILS may also be an option if accessing the CJRS is not appropriate in your circumstances.
- To access the scheme, decide which form of finance you require and identify which accredited lenders can offer it. This can be done by using the British Business Bank’s filter tool by clicking here.
- This filter allows you to put in the region where your business is based and the type of loan you require and will provide you with a list of suitable lenders.
- Research what each lender is offering via their website and decide how much funding you require.
- Collate all necessary information to make an application, including an up to date business plan, detailed management accounts and cash flow/financial forecasts.
- Make an application with your chosen lender that suits your requirements. The loan application process is likely to differ from lender to lender.
The British Business Bank has indicated that it may be beneficial to seek finance first through a lender that you have an existing relationship with.
Some lenders have advised that they may require personal guarantees from directors against any loans, although this cannot extend to guaranteeing as an asset your main residence.