What can business owners expect from lenders once the Coronavirus Business Interruption Loan Scheme comes to an end?
With CBILS ending on March 31st, there will be a huge difference in what business owners can expect to be offered from lenders when they are looking to secure funding for their business.
Over the last 12 months, businesses that have been eligible, have been able to take advantage of:
What will business owners be offered moving forward?
All the details haven’t yet been fully confirmed but here’s what we do know:
There are similarities between this scheme and CBILS, and the following benefits will remain:
What are the major changes that business owners need to be aware of?
What we don’t know yet, is which lenders will be part of the scheme.
Without any restrictions on interest rates charged, we might expect that more lenders will join the scheme.
And the major question is how are lenders going to assess affordability?
If the business is not yet back to normal trading performance, how are they going to afford repayments from day one? This is where the loss of the capital repayment holiday could hugely affect the likelihood of a business making a successful application.
What to do right now
There are a few scenarios to consider if your business needs to inject some funding right now, or in the next 12 months:
A few points to note
A business can only have either a Bounce Back Loan or a CBILS Loan
A business can take multiple CBILS facilities, so you could for example have a CBILS term loan and CBILS asset Finance facility
How can Ascendis help?
We have been working closely with many of the CBILS accredited lenders over the last 12 months and we can help you process your applications.
If all the information required is available then we don’t charge any additional fees to process this for you.
If you are unsure about what to do, get in touch now and we will try and assist as best we can.
Contact our Finance Director: Glyn.firstname.lastname@example.org or by calling 07519 871 870.
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