When applying for finance under the Coronavirus Business Interruption Loan Scheme (CBILS) our understanding is that you’ll need to pull together the information below before your application is considered. It’s worth noting that due to the high volume of enquiries, lenders tend to be dealing with existing clients first, so we advise you to approach your current bank if listed in the first instance.
The crux of whether a business will qualify for CBILS is the business has to be able to demonstrate it was a viable business before the pandemic and not an Undertaking in Difficulty as at 31.12.2019. To be successful, the balance sheet should be positive (no adjustments will be made to the balance sheet in respect of Directors’ Loan Accounts). The purpose of CBILS is to assist the customer during a period of business disruption due to the Coronavirus but the lender will need to understand and assess the business’ survivability during this period and the plans for resuming trading once they have got through this period.
A statement of assets and liabilities will need to be completed for each Director.
Copies of personal credit reports for each Director. These reports will need to be clean i.e. no CCJ’s/IVA’s/bankruptcy.
Management accounts up to end Dec 2019.
Certified accounts for the last 3 years (or as long as possible if trading for less than 3 years)
A list of the businesses existing debt including term loans, Invoice Finance, HP, Lease and overdrafts including amount, term, reason, lender, outstanding balance.
Serviceability will to be based on December 2019 management accounts and final accounts, subject to any seasonality. Minimum 1 x cover at EBITDA.
Balance sheet to be positive – Director’s Loan Account can be taken into account.
Open banking access will be required and there can be no unpaid items in the 3 months prior to 31 December 2019.
Cash flow forecast to determine amount of loan over next 6 months – no wages to be included.
Time to Pay is ok but if since Feb 2020.
More information about CBILS can be found on the British Business Bank website by clicking here. We will also be regularly updating our website and social media channels so please keep checking these.
Please contact us to discuss how we can help you through this challenging time and find out that financial help available to you and your business. 01527 558539 or email Julia Gallagher