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Bounce Back Loan Scheme

Posted 01/05/2020 by Amy Patterson

There are many businesses looking for CBILS funding at the moment. With lenders being inundated against a backdrop of 23 million companies potentially seeking assistance and with only 16,624 applications now approved in 5/6 weeks, this equates to £2.8 billion, a far cry from £330 billion. It is clear that the current CBILS offering is simply not capable of delivering the essential help needed by millions of small businesses in the UK.

Small business recovery loan

On Monday 4 May 2020 a new CBILS loan will be unleashed. It is entitled the 'Bounce Back Loan' scheme and will run alongside the current CBILS facility. It is a relief to hear that the Chancellor is now looking to provide a full guarantee (100% government backed) for loans of up to £50,000 from the Government. This is potentially amazing, and this will tick all the boxes of the business community. Sole traders and micro businesses make-up 95% of the small business community in the UK.

There is a definite requirement to provide a standardised underwriting process that really works for small firms. The requirement to provide 3 years forecasts is not suitable as we are asking small firms to predict the future, which quite frankly is a challenge. We all understand that there is need to ensure financial correctness, avoid fraud and reckless lending but we have to help those firms that are dreadfully exposed and terribly vulnerable.

The refined/normal commercial credit process will help to ensure that the application process is less burdened with requirements that will and are clogging up the system. So, the decision by the chancellor to listen to our recommendation for a 100% guarantee on smaller loans, alongside the creation of a new fast-track system for those applying for them, will give hope to thousands.

We are grateful to all the organisations that have been battling and lobbying the Government tirelessly for weeks. Firms such as Federation Small Businesses (FSB), Institute of Directors (IOD), Association Chartered Certified Accountants (ACCA), National Association Finance Brokers (NACFB), Financial Conduct Authority (FCA) and the list goes on. This is along with the many voices of businessmen and women who again have been fighting for their businesses, their staff and their clients. Our very own founder and director Will Farnell has been battling at government level with the ACCA pushing to bring urgent change and reform to help businesses before it is too late.

What we are doing?

We are helping many clients seeking financial support from both the CBILS funding channel and the normal avenues of traditional finance companies and lenders currently looking to support applications that have failed the CBILS process. From companies who have their overdraft request declined and the existing facility called in, through to businesses struggling with the detailed criteria now looking to refinance assets to fund the gap between continuing trading or financial closure.

We need to produce a commercial application form that will have relevant and supportive financial information to allow the lenders to quickly review your application so as to be able to make a quick and decisive decision on your behalf.

The process is made as easy as possible with the underwriting and application process being managed and supported by our Corporate Finance Director Justin Lavery to ensure each application is ready to be submitted.

Documents required

· Fully completed Commercial Finance Application

· Last 2/3 years full accounts

· Up to date management accounts

· Last 6 months business bank statements

· Last 6 months personal bank statements

· ALIE. Statement of personal assets, liabilities, income and expenditure from all Directors

· Concise narrative of business operation, and C19 recovery strategy

What to do now

We are here to help, please do make contact with Justin on 01603 766078 or 07944 983 413 or email so we can help you and your business get through this crisis.

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