Today I’m going to talk a little bit about the history of the lockdown.
As an expert U.K business finance broker, we’ve been in lockdown for 110 days now.
110 days ago, we had some issues in terms of how we were going to fund UK business going forward. The government has variously put forward schemes, so from the Coronavirus Business Interruption Loan Scheme, or CBILS as you will have heard it, and then latterly the Bounceback Loan scheme for the 100 percent guarantee loan.
But the number of lenders that have come on stream in the last hundred-odd days is quite
remarkable, really. At the beginning of the lockdown, we had 42 lenders who were operating, previously, the Enterprise Finance Guarantee Scheme, and they were the route
that the government took to get the money that they guaranteed out to market.
Banks became inundated, they ended up with lots of backlogs and they were not taking on new cases from non-customers, so it became a little bit difficult to get some facilities through.
Coronavirus Business Interruption Loan Scheme.
However, we now have over 100 lenders in the UK offering the Coronavirus Business Interruption Loan Scheme. So the choice of lenders is much improved.
Now in Scotland, it is even better as a proportion because before lockdown there were 22 lenders on the business bank website, there are now 72 lenders.
So, there is an additional 50. So that is giving you access to cash through the CIBILS scheme. Obviously, the Bounceback Loan Scheme has been put forward latterly, so that was the fourth of May. There are 20 lenders who are offering that scheme.
So, it is little bit more restricted in terms of who you can go to for that product. But if you are looking for anything between £2,000 and £50,000, still the advice is to talk to your existing bank because the likelihood is that your high street bank will be offering the Bounceback Loan Scheme, and it is probably the quickest and easiest way to accessing cash.
However, if you have a requirement for more structured cash and looking forward a little bit more, in terms of planning, through the Coronavirus Business Interruption Loan Scheme, there are a number of different categories of lender.
Invoice finance lenders and asset finance lenders
So, you have the Term-Loan lenders, you have Invoice Finance lenders, you have Asset lenders and you also have Revolving Credit lenders, or, as you and I would probably know it, the traditional overdraft. So, in terms of the Term-Loan lenders, there are 91, now, who will offer that service, in terms of Invoice Finance or specialist Invoice Finance, a lot of the high street banks will also offer it, but they are not on the British Business Bank website as
offering this as a specialist finance, but for Invoice Finance there are 18 specialist lenders. On the Asset Finance there are 21 specialist lenders.
Again, there may be some high street banks that would do that, but they are not listed. So, these are just specialists in that field. Revolving credit, you are looking at 20 lenders who are offering Revolving Credit facilities, so overdrafts or just kind of Term-Loans effectively, so a cash flow advance I think you might call that.
So it’s a twelve month facility and it will be reviewed at the end of those twelve months, if you want to renew, then you may be able to do that. But it is another way of accessing cash reasonably quickly.
In terms of the availability of getting cash through to any of these banks, really, because of the increase in the number of lenders, it has increased the likelihood that one or more lenders will be interested in your case.
So the early days of CBILS, where people were a little bit disillusioned with it as a result of the lack of access, and that access has been improved considerably. And it is not really being talked about very much in the press.
So I thought I’d better let you know that these schemes are still running and they’re still very much available for you to assist you through this difficult trading period that we’re going to encounter over the next probably 12 to 18 months, I would suggest.
So, hopefully that has been of help to you and that you can access the cash that you require through those schemes.
Finance broker support
I can help you with the CBILS scheme, Bounceback Loan, though I can’t really help with, in terms of the idea that we have to put you in touch with your existing bank.
But if you have no joy with that, then obviously the third option is to come to a Finance Broker who has access to probably a wider range of lenders who may not be offering that scheme, but who also may be interested in supporting your business.
So if that’s of use, I’m pleased, because we want to make sure that as many businesses as possible survive as we come out the other end of lockdown.
Call us today on 01383 624 425 or submit an enquiry and we will contact you.