Arrange your CBIL

Compariqo Finance has partnered with one of the largest business finance experts in the UK to give you access to the government backed Coronavirus Business Interruption Loan Scheme (CBILS) for small to medium sized businesses.

A team of business finance specialists who work with SMEs and their advisors are on hand to ensure that borrowers can be matched to a lender with the terms that best suit their requirements.

We and our partners will assist you on all aspects of the application, which will then be presented to a lender exactly according to their criteria to ensure that your application stands the best possible chance of acceptance.

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What is the CBILS?

The Coronavirus Business Interruption Loan Scheme is a government initiative designed to help alleviate the financial impact to small and medium sized businesses from the COVID-19 outbreak.

Loans are backed by a guarantee and can be offered at commercial rates of interest – meaning less risk to lenders. This means that you have more chance of being accepted.

As with any lending, any application under the CBILS can be complicated. Our expert partners know all of the lenders currently operating with the CBILS and can help you decide on the most appropriate types of funding for your circumstances and suggest the lender who is likely to offer the most cost-effective terms in the most timely manner to get you the funds you need to keep your business afloat.

Things you need to bear in mind

Loans via the CBILS are limited to either a maximum of 25% of 2019 turnover or twice the annual wage bill – whichever is the greater.

Borrowers will be asked to provide a lot of financial information and should initiate the process as soon as possible.

Borrowers are obliged to repay all of the amount borrowed, not just the 20% that has not been guaranteed by the government. Any defaults on payment will be recovered through standard methods. The loan is not a grant and will have to be repaid.

The CBILS is a complex process and will only be considered for applicants who have a viable business. The loan is not considered to be a “prop loan” so if your business was suffering long before the onset of the Coronavirus outbreak, your application will likely be rejected.

How a CBIL differs from other loans:

No interest to pay for the first 12 months
Payment Holidays
80% is guaranteed by the government
Low interest rates
No arrangement fees

ARE YOU ELIGIBLE FOR A CBIL?

YES

✓Your business is UK based with an annual turnover of less than £45 million

✓Your business is within an eligible sector

✓You have not previously received state aide in excess of £200,000

✓You had a viable business operation prior to the coronavirus outbreak

✓Your business has operated through a business account (for sole traders and freelancers)

✓Your business has a recovery action plan in place

NO

✗ Your business is a start-up

✗ Your company was struggling to operate prior to the Coronavirus outbreak

✗ You are applying for a loan to fund growth or an acquisition

✗ You cannot demonstrate how you have mitigated risk to your business during the coronavirus outbreak

FAQs

Which lender should I approach?

Not every accredited lender can offer every type of finance available under the CBILS and the amount of finance offered can vary between lenders which is why you may want Compariqo to assist you.

Who makes the decision on if I can borrow?

The CBILS lenders make the decision on if you can borrow via the CBILS. These lenders range from High Street Banks and Challenger banks to Asset-based lenders and smaller local specialist lenders.

At Compariqo we can help you to find the most appropriate lender to approach via our expert partners in business finance.

What is the definition of the turnover of an SME?

Under the CBILS, an SME must have a turnover of no more than £45 million per annum. The borrower cannot be an individual other than a sole trader or a partner in a partnership and is acting in a business capacity.

If your business has a higher turnover, we may be able to find you other solutions that are more applicable to you through our partnership.

What are the fees to borrow under the CBILS?

There is no fee for SMEs to use the CBILS.

What types of funding are available and who offers which type?

THE CBILS provides access to a wide range of finance options including;

Term loans
Overdrafts
Asset Finance
Invoice Finance

There are a growing number of lenders participating and our finance partners have recently issued an open letter to Rishi Sunak, the Chancellor of the Exchequer to request the expansion of lenders who can access the scheme to cope with the current level of demand.

What if I am refused under the CBILS?

If your application is turned down by a lender, you can still apply for a loan with other lenders offering alternative finance options who either work within the CBILS or outside of it.

The criteria for lending has recently changed so it’s worthwhile making a new application, even if you have been refused in the past.

Our partners know which lenders are most likely to approve and then fast track your application, as they know what each lender is looking for and how to present the application.

What if I don’t have sufficient security to access the scheme?

Since April 6th 2020, sufficient security is no longer a condition to your application which means that you can now take advantage of the scheme if you were previously unable to.

You can now take advantage of the low rates, payment holidays, and interest-free periods provided by the scheme.

This significantly increases the businesses who are eligible for the scheme and may be worth re-applying if you have previously been refused.

What if I’m not successful applying for the CBIL?

The CBILS was designed to support small business of all types through the Coronavirus outbreak. However, it is inevitable that some businesses will not be eligible to help, perhaps because they are too large or do not match some criteria.

There are other types of finance available and if your CBIL application is rejected, we can help you to find alternative funding and will not relent until we have exhausted every possibility to help your business survive.

Contact Compariqo to start arranging your CBIL:

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