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Coronavirus Business Interruption Loan Scheme – some top tips

Here at WCL clients have been asking for assistance with regard to their applications for the Government’s Coronavirus Business Interruption Loan Scheme (CBILS).

Here are a few pointers as to what we see banks needing ahead of granting a loan under the government’s CBILS:

  • They will only lend to businesses that can pay the money back.  The fact that the Government is supporting this does not mean that they will lend against any business.  Therefore, you need to be able to prove to the bank that repayments (even after any repayment holiday) can be met;
  • You need to be able to prove that the business was viable prior to the crisis and that the business was not failing anyway;
  • You need to ensure that all other avenues of funding and cashflow assistance have already been applied (rates relief, VAT holidays and furloughing); and
  • As business owners, you need to be able to come up with assumptions as to how long and to what degree your business is going to suffer.  Some clients have taken out all revenues for 3 months, some for 6 months whereas some have only taken down their revenues as they will continue to operate.

As for what specifically we have been supplying (in answer to the four points above):

  • A set of financial projections for the next 12 months, consisting of cash flow, profit and loss account and balance sheet;
  • Up to date management accounts;
  • Confirmation of how the other areas of assistance have been applied in your projections; and
  • Some narrative as to how you see things panning out.  What have your customers been saying?

If you would like some assistance then please get in touch to discuss your situation. Please contact us at info@whittockconsulting.co.uk or 01225 585756