Update: The application deadline has been extended to January 31 2021.
My blog on Coronavirus Business Interruption Loan Scheme (CBILS) demonstrated how your business is eligible for the scheme. This week’s blog aims to let you know the key factors on how to form a successful application for the loan scheme.
Majority of the businesses assume that the CBILS is one of the most complicated schemes to get access to. Small Business Accountants and their clients are struggling with shorter terms of the loans. Banks are rejecting the requests of those who used to go to a high street bank getting a loan for 10 to 20 years. Their request is being rejected because of affordability concerns as banks are calculating affordability over five years and not above.
Considering this fact Taj Accountants offers the following tips for a successful CBILS application:
Understand the Contents: Make sure you understand the questions that are being asked and answer them correctly. Make sure to provide all the information accurately.
Prepare Documents: You will need to provide certain evidence to show that you can afford to repay the loan. Thus you need to provide them with:
1. Business plan
2. Historic accounts
3. Management accounts
4. Cash flow forecast
5. Assets Details
Show Security: Lenders will assess you on having available security for instance: discountable invoices, unmortgaged property, plant & machinery assets, stock. Having security will provide you backup in order to get the loan.
Choosing Lender: This loan will be provided by the British Business Bank through its accredited lenders. Contact the nearest and the most reliable banks of your convenience. Try to stick to the bank you are already a client of.
Maximise Available Relief: You should prepare a concise written summary of how it has maximised all other reliefs available as part of the Government’s emergency measures, e.g. Job Retention Scheme, VAT etc
Be Patient: Lenders are quickly becoming piled up with applications. Banks need four to five hours internally to get through a loan application. They can do one to two a day maximum per person. During that time you need to have your patience.
Consider an Advisor: To assure success to your application, you should reach out to experts. You local accountants in east london can help you in providing with guidelines and documentation procedures. You can always reach us through our emails, helpline and websites.
To learn more about the Coronavirus Business Interruption Loan Scheme (CBILS) for Your Business check our blogs. Read our blog for other Government Coronavirus Measures. Taj Accountants suggest you get all the resources to get your application successful and contact us for further assistance.
What types of finance does CBILS provide?
CBILS provides wide range of business finance facilities, including:
• Term loans
• Asset finance
• Invoice finance
DISCLAIMER: The purpose of the blog is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Taj Accountants for further assistance.