Coronavirus Business Interruption Loan Scheme (CBILS).

| Sedulo COVID-19 guidance

What is CBILS?

Coronavirus business interruption loan scheme (CBILS) is a government initiative to make it easier for businesses to access finance on preferential terms if they have been affected by COVID.

Key features

  • Borrow between £50,000 and £5,000,000
  • All lender fees and 1st year interest covered in full by the government
  • Nothing to pay in the 1st 12 months (capital or interest)
  • No personal guarantees on facilities up to £250,000

Important to know

  • You can have more than 1 CBILS so if you’ve already taken one, it doesn’t preclude you from having others!
  • No early termination fees and so you can borrow money and repay it on the anniversary of taking it with no fees.
  • If your bank says no, you’re still more than likely a yes for another CBILS lender.

The benefits of CBILS...

  • Reduce your personal exposure to the business by refinancing debt that you are guaranteeing onto a facility with no security.
  • Expand your business by using free money for 12 months to buy and sell stock a number of times over.
  • Reduce your interest costs and therefore increase your net profit margin.
  • Get peace of mind that you have enough of a cash cushion to get through the current economic situation
  • Use the capital to negotiate supplier discounts and improve your gross profit %

The costs of CBILS...

You can borrow the money for 12 months and the cost is ZERO! So if you don’t absolutely need the extra money but as an entrepreneur, you could sweat the asset to make money make money, you should do!

After the 12 month free period, each lender has different interest costs based on their own cost of capital and risk weighted model – choosing the right lender for you is key, and that is where we can help. Some of our lenders include…

  • High street banks, including Santander, RBS, Natwest, Barclays, Lloyds Bank & Clydesdale Bank.
  • Alternative lenders, including Nucleus, FW Capital, Market Finance, Business Enterprise Fund, White Oak, Liberis, Newable, Close Brothers, 1pm PLC, Iwoca, Funding Circle & Merchant Money.

Get support with CBILS...

Get in touch for a free 5-minute call to review the finance options that could alleviate some pressure and allow you to focus on leading in your business.

Book a call with our dedicated COVID-19 Task Force...