How CBILS Can Support Your Fleets

Someone calculating their finances with pound coins on the table

Time is running out

With the application deadline for the Coronavirus Business Interruption Loan Scheme (CBILS) approaching, it is more important than ever to take advantage of the Government scheme while you are still able to.

Furthermore, businesses have until 31st March 2021 to get their application sent in. As a result, it’s important to get your application in as soon as possible in order to see if your business is eligible.

About The Scheme

The Coronavirus Business Interruption Scheme (CBILS) has been developed by the government in order to help small UK businesses, including fleets, which have been affected by the pandemic. The scheme offers financial support to companies losing revenue.

CBILS is operated by the British Business Bank, which has a list of over 100 accredited lenders, these include:

  • High-street banks
  • Challenger banks
  • Asset-based lenders
  • Smaller specialist local lenders

There are specific brokers which can help businesses looking to apply for CBILS find lenders which are most suited to their company. For example, Ethos Asset Finance is a finance broker which specialises in the private hire and fleet sector.

A lender can provide up to £5 million in the form of:

  • Term loans
  • Overdrafts
  • Invoice finance
  • Asset finance

How Can CBILS Help Fleets

If your business has suffered as a direct impact of the global pandemic, you are likely to be considered for one of the below options. Furthermore, it’s important to take advantage of them while the application & eligibility scheme remains available. For the moment, the deadline to apply is 31st March 2021, having been extended.

  • Capital only repayments for the 1st 12 months (no interest)
  • Lending available between £50K – £5m*
  • No Guarantees required up to £250K
  • Release cashflow from assets free of finance
  • Asset finance & refinance
  • New purchases
  • Agreements considered HP, Finance Lease
  • Available to business with an annual turnover of up to £45m.
  • Available for a limited period.

Additionally, business who had previously taken out a Coronavirus Business Interruption Loan but are still struggling can now take an additional CBILS to get the extra money they need, as long as they are eligible.

Who Qualifies For CBILS

Each lender who is able to approve a CBILS loan has their own approval process, however the British Business Bank has outlined a list of criteria which businesses need to meet in order to qualify.

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
  • Not have been classed as a “business in difficulty”, if applying to borrow £30,000 or more

With each lender having their own specific lending requirements it can be tricky for businesses to know which one to apply to. Companies can use finance brokers, who will know which lenders are the best match, to have the best chance of being successful in their application.

If you’d like to know more about how CBILS could help your business and apply before the March 31st deadline, get in touch with Ethos Asset Finance today.