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The current lockdown situation imposed on the UK has led to some incredible measures by our Government in a very short space of time. While their efforts are to be commended, the reality of the situation is potentially leaving some businesses exposed and without the means to meet their financial commitments, because the promised emergency funds are not available in time.
Here, we talk about some of the pros and cons of the CBIL Scheme (Coronavirus Business Interruption Loan) and what the alternatives are for the UK’s businesses as they fight to remain afloat during these challenging times.
The scheme is overseen by British Business Bank and their simple process for applying, and details of the 40 lenders qualified to provide these loans can be found here. There has been some criticism for this scheme, however the rules have been set up so that as many people as possible can benefit:
It’s worth noting that this isn’t a grant and the borrower will be liable for the full amount.
High Street lenders are unable to cope with demand
If you need cash fast in order to meet your business out-goings, waiting on hold for the helplines who are experiencing massive demand might not be the best use of your time. Instead, we can look at favourable rates for equity release on your assets – this is where you sell your asset back in order to release cash in to your business. But the beauty is, you get to keep the asset (and benefit from using it) because you’ll be making manageable monthly payments whilst benefiting from the cash injection in to your business.
To find out more about equity release and whether it’s a short-term option to inject cash in to your business, check out the TVAF Refinance Loans page.
Smaller niche lenders are signing up to parts of the scheme
Your bank may only be signed up to one part of the scheme, so you might not be able to qualify for the best loan for you. Working with an independent asset finance broker, you’ll benefit from us having a complete view of your business and wider-access to the most appropriate part of the scheme to help your business through this time.
An independent broker might have access to a wider range of funders
Although there are 40 accredited lenders on the CBILS panel, an independent broker will have access to that number of brokers who might equally have the ability to provide alternative finance options at the moment. It’s worth applying for the scheme (if you have the time) but making sure that you do a rate comparison using an alternative form of lending.
Find out more about the benefits of Asset Finance on the National Association of Commercial Finance Brokers website.
If you’d like to speak to one of our team about your options at this time, please get in touch with the TVAF Asset Finance team on 01635 785 400 or Contact Us.