CBILS - Coronavirus Business Interruption Loans

Acquire a business loan up to £250k with no personal gurantees, and no repayments for the first 12 months.

Benefits of CBILS Loans

A Coronavirus Business Interruption Loan (CBILS) is a form of funding brought to market by the British Business Bank to help aid businesses remain working through the coronavirus pandemic. The National Lockdown rules, and lack of indoor mixing has forced businesses to change the way they work, and has therefore impacted their success this year. The CBILS Loan can help you, and your business to keep afloat, and push on past the difficulties faced during the coronavirus pandemic.

As a single product, CBILS Loans allow borrowing up to £250,000  with no personal guarantee attached. Up to £5,000,000 in total CBILS Loans across multiple lenders are able to be borrowed. Lenders typically wil fund 20% of your annual revenue, meaning a £250,000 revenue is the minimum to apply for a CBILS loan. To acquire a £250,000 CBILS, your turnover must be over £1 million.

If you are in the group of many other smaller businesses, and do not meet th necessary criteria of the CBILS, you can submit an application for a Bounceback loan. This works very similarly, but is capped at £50,000 funded. This is sometimes known as a BBILS loan, and is accessible from your business bank. We cannot help you with this, as it is dealt with by your bank. It is a simple process, and you should have a decision within 24 hours of submitting your application online, or in store with your bank.

Larger businesses can apply for a CLBILS, which is a Coronavirus Large Business Interruption Loan Scheme. It is again a very similar product to that of the CBILS, but for companies with a turnover of over £45 million. This product can allow you to fund 20% of your annual revenue, with a 20% personal guarantee, compared to the usual full guarantee placed upon the borrowings.

Perhaps your projected revenue is now an unachievable target, or you are struggling to maintain payments to your suppliers. A CBILS Loan will help you cover these payments. The BIP (Business Interruption Payment) is placed in order to help businesses survive the coronavirus pandemic. This payment covers the repayments for the first 12 months, as well as the arrangement fees to the lender.

This product is available for all industries, as long as you have continued to trade throughout the last 3 months.

Alongside a CBILS Loan, other products can work in conjuction with this. Invoice Finance facilities are accessible with a BIP payment, alongside a CBILS loan. Asset Finance CBILS and Trade Finance CBILS are also available through our panel of over 250 lenders. The current deadline for this product is the end of January 2021, as this offering is tailored to aiding businesses get through the coronavirus pandemic.

Other products are still available for borrowing through some lenders. Unsecured Business Loans often require a personal guarantee from the Company Director/Shareholder to be. This means that for any reason the business defaults on the loan facility, the director will personally guarantee to pay off the funds. There are still lenders available to offer unsecured loans, with upwards of £100,000 being available. Due to there being no security involved, a strong business profile is necessary to be eligible for a loan. Secured Loans are also still acquirable if you do not fit the criteria for an option without security attached. This is ideal for smaller businesses in need of more funding than the £50,000 BBILS.

Some traditional Invoice Finance lenders are still operating as usual, meaning the refinance of an existing facility is also a possibility.

For more information about a CBILS loan, or any other financial product for your business please contact us, or submit an application online through our website.

More information and official updates about CBILS loans can also be found on the British Business Bank website.

Eligibility

Turnover

The minimum turnover CBILS lenders will deal with is £250,000.

Trading History

To acquire this form of funding, you must have at least 12 months trading. We will then approach our panel of lenders to apply for a CBILS loan.

UK Registered Businesses

Due to us dealing with UK Based Lenders, we can only find funding solutions for
UK Limited Companies.

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FAQs

How much will a CBILS loan cost?
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A CBILS loan has no repayments for the first 12 months, and you will not be charged an arrangement fee. The APR interest rate signifies the percentage rate paid annually, which on a CBILS loan will be starting from 1.4%. The range of interest costs can be fairly broad, depending on the profile of the Business.

Am I eligible for a CBILS Loan?
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Eligibility varies largely from lender to lender,with some much more flexible, some much less. The basic criteria for applying for a CBILS Loan facility is as follows:
£250k minimum turnover
12+ months trading history
No County Court Judgements or Adverse Credit History
Director being a homeowner (is preferred)
Businesses will ideally be profitable and have a positive balance sheet
UK Registered Limited Company
Proof of negative impact from the COVID-19 pandemic.

If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.

How long does it take to arrange a CBILS Loan?
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CBILS Loan facilities can be completed within 1 – 2 days, from application to funds in your account. Our aim is always to make the process as quick, and simple as possible, keeping you updated throughout.

How much money can I get through a Business Loan?
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CBILS Loans are accessible up to £250,000 with no personal guarantee attached. Up to £5M in total CBILS Loans across multiple lenders are allowed.

Why JD Capital Finance?
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We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.

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Disclaimer: JD Capital Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.
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