By Stephen Dinsmore, Corporate Finance Manager, Armstrong Watson

AS most businesses are aware, the deadline for the Coronavirus Business Interruption Loan Scheme (CBILS) applications is the 30th September, with facilities needing to be in place by the end of November.

This gives businesses just over a week to ensure that they have their applications in with lenders should they wish to access finance under the scheme.

I would implore any business that has been affected by Coronavirus and that may need some financial support in the short to medium term, to explore their options under the scheme. Whilst the loan side of the scheme has been widely advertised, businesses are able to utilise CBILS to access other types of lending such as:

• Acquisition / Management Buy Out

• Business Loans – for any business use

• Machinery, plant, commercial vehicle and equipment finance

• Refinance and restructuring existing assets and associated debt

• Invoice Finance – CBILS loans can be added to achieve 100% debtor funding.

Businesses can access this lending and benefit from the features of the scheme including; no interest or capital repayments over the first twelve months (in most cases), no personal guarantees for lending of less than £250,000 and competitive rates of interest once repayments commence.

If you have already obtained some finance through CBILS or the Bounce Back Loan Scheme then you are still able to obtain additional funding if required - provided you remain within the parameters of the scheme. If you have a Bounce Back Loan and need additional finance then you would need to repay the Bounce Back Loan with your new lending.

Before taking on any additional debt it is important to consider the financial commitments once repayments commence, the potential effect on the financials of the business, and ensure that you are utilising the most suitable form of funding available for the business. I would recommend speaking with your adviser network to ensure that you have considered all options before progressing with any new lending.

If you are looking for advice for your business, then please get in touch with me today; email or call on 0778 871 2078.