Life after CBILS: how will lenders react post-government guarantees?

After the announcement of a second UK lockdown, the government also announced that they would be extending the deadline date for the Coronavirus Business Interruption Loan Scheme (CBILS).

Untitled design (15)Now, business owners can apply for a CBILS up to the new deadline date of March 31st, 2021. The CBILS has been providing much-needed UK business support for SMEs, with more than 28,460 businesses making an application.

However, of that high number of applicants, only 21%* were approved during the initial launch of the loan scheme. *Correct as of November 2020

The CBILS has now been dramatically expanded, meaning that more businesses are eligible for the scheme. As the UK copes with a second lockdown, business owners are looking ahead at how lenders are going to react post-government guarantees.

Here's what you need to know about your next finance options and funding after CBILS.


How will I access financial support for my SME post-CBILS?

Forward-thinking business owners are, rightfully, already thinking seriously about keeping their businesses running when the guarantees of the government are no longer applicable.

Accessing financial UK business support will remain very high on the agenda, whether recovery from Covid-19 is fast or not. With the worries of the pandemic only compounded by the threat of a COVID-induced recession, alternative financial support has never been more important to know about. Whatever your industry, there are avenues for financial support.

Although the CBILS has helped to support more than 73,000 businesses since its March launch and its November overhaul, the uncertainty of the future means ensuring that you have a firm plan in place for ongoing access to financial support.

Funding after CBILS is going to mean facing potential challenges. With so many options to explore, sourcing a finance broker has never been more important. Not only can a finance broker identify the next finance options to suit your business model, but they can also do all of the legwork. That means you get to focus on your business management rather than worrying about how you're going to cover your business costs during a global pandemic.


What financial solutions can I access?

When you chat with a finance broker about your next finance options, you'll find that there are often far more options available to you than you might have thought. Businesses across the UK (and around the world) are facing many challenges, and alternative funding options are the key to ensuring that your business survives when funding after CBILS is no longer an option. Here are some of the main UK business support financial solutions that you and your business can access quickly and easily:


Invoice Financing: When a business has a high volume of invoices, slow-to-pay customers can be very disruptive. That's where Invoice Financing comes in. It's a very simple process, where you borrow the cost of the invoice from the lender (usually being paid 85% of the invoice total immediately). It's a very straightforward and highly competitive borrowing option. It's a quick and easy way to access the money that you need, and due to the competition, you will often find very agreeable fees ranging from 0.1% to 3%. If you're worried about keeping your business running post-COVID and post CBILS, then invoice financing is an option that's worth looking at.


Asset Finance: One of the most practical financing solutions, Asset Financing is a loan intended to buy specific equipment that will be used to help your business stay secure. The security of this type of loan is the asset itself, which means that you don't need a large cash outlay. Instead, you pay back the amount owed as if it were a lease, but when the payments are finished, you own the asset outright. This is a financing solution that's always worth investigating.


Commercial Mortgage: Used for buying new commercial property, for refinancing existing assets, paying off debts, or simply for smoother day-to-day business management, a commercial mortgage is a more flexible version of a residential mortgage. That means the cash that you get can be used in the way that you need it most.


Business Loans: There are two types of business loans available to you. Whether you opt for secured or unsecured, a business loan is a traditional way to get the money that you need, when you need it. As businesses face a unique and unpredictable financial future, both secured and unsecured loans can be the key to business survival.


How can TSF support you?

As the global pandemic continues to disrupt businesses, TSF is well-positioned to help make sure that you get the financial support that you need. We provide exceptional customer service and are 100% independent. That means that you don't pay us anything to act as your finance broker. We simply connect you with the lenders that match your needs and provide you with a dedicated advisor who will research your options and help you to secure funding. It's never been easier to get the support you need when it comes to accessing the next finance options that will address your working capital situation.

Take advantage of our 30 years of experience helping businesses of all sizes and industries and book a meeting today with the dedicated team at TSF.


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