How to apply for a Coronavirus Business Interruption Loan (CBILS)

Recently, FSB hosted a joint webinar with panelists from British Business Bank, UK Finance and FSB Funding Platform. In this blog, we wanted to extract the key points for FSB members on the financial aid that is available under the Coronavirus Business Interruption Loan Scheme (CBILS).

We hope you find the following videos useful and informative as an introduction to CBILS loans. For more specific advice tailored to your business, please apply online or request a callback.

If you like the videos featured in our blog, then click here to watch the webinar in full.

What information should you prepare in advance of applying for a CBILS loan? 

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It is best to approach CBILS the same way you would do, as if it was a regular business loan. However, due to the coronavirus crisis, you will need to explain some aspects in more detail. Each CBILS lender will have their own loan application form, but here is a checklist with the typical information lenders require so they can assess your request swiftly:

          • latest full year accounts including the P&L, even if only in draft
          • last 6 months bank statements
          • information about your business assets and liabilities
          • a financial forecast or a business plan, to illustrate how your business plans to trade once the lockdown is lifted

Is an unused overdraft an obstacle to getting approved for a CBILS loan?

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CBILS covers a range of financial products, and not every accredited lender will offer every option. If you are banking with a high street brand, you may find that there are now different options on offer for you to utilise your existing overdraft. But you do need to check carefully, because businesses do not automatically qualify for CBILS. You will need to apply and you may find that a business loan with repayment terms of up to 6 years gives you more flexibility than an overdraft, because they can get expensive when amounts are not repaid in full.

Are there any hidden details in CBILS loans FSB members should be aware of?

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CBILS facilities are provided by banks, and as you would ordinarily, you are expected to read each agreement in its entirety before you sign. This does include the small print, however it is fair to say that CBILS accredited providers are not trying to catch you out.

The delivery partner behind FSB Funding Platform is Finpoint, and as a FCA authorised credit broker we are always on hand to assist FSB members make sense of the information they are presented with. If you share information with us, we can help you on a case by case basis to navigate any jargon so you can decide with confidence whether a product does fit your requirements.

One thing small business owners should be aware of

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We can’t stress this enough, but please take good care with whom you share your data or when making payments. In times of crisis, the number of scams or fake websites rises very quickly, because criminals are very good at impersonating people, organisations or even the police. And with a large proportion of work now done online, there are now more people and processes than ever exposed to such scams.

The FSB is a stalwart of small businesses and the team behind the FSB have helped many members through tough times over the years. Finpoint, as delivery partner of FSB Funding Platform, has gone through rigorous checks before being accredited by FSB and has in part been chosen because its technology is designed to help protect the data of each member business. All so you can rest assured that it is a trustworthy service.

How we help

FSB Funding Platform is free to use for members. We’re 100% transparent about fees and rates, and give you access to the UK’s largest panel of business lenders. We’re also 100% independent. Our only interest is in making sure you get the right funding option for your business need.

Want to know more? Speak to us about funding or your financial planning needs.

Marcus Gruenwald

Marcus Gruenwald

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