Posted 25/08/2020 by Justin Lavery
If you have been turned down for a Bounce Back Loan, or are struggling to apply for one because of who you bank with then there are options still open to you.
One of these is to hold on and simply wait until either more lenders are accredited to offer these loans, or until existing lenders begin accepting applications from external customers. While this may be possible for some businesses, for many, they simply cannot afford to wait this long to access the funding they need.
With strict restrictions placed on business and physical movement since lockdown measures were introduced in March, companies across the country have been surviving with severely reduced income for many weeks already. This has led to an unparalleled squeeze on cash flow which has brought some companies to the edge of survival. The prospect of having to wait several more weeks before receiving an injection of capital is simply out of the question if the business is to survive. If this is the case you may need to consider other avenues of commercial finance:
Just as applicants who have been declined a loan through the Coronavirus Business Interruption Loan Scheme – or CBILS – can alternatively apply for a Bounce Back Loan, anyone who has had their Bounce Back Loan application rejected can alternatively enquire about funding through CBILS. However, directors should be aware that the eligibility requirements for borrowing through CBILS are more stringent than the BBLS, therefore, those who do not qualify for Bounce Back Loans may find they are also turned down for lending through CBILS.
Alternative business finance
If you are in dire need of funding, applying through the BBLS may not get the money into your company quickly enough. If this is the case you can consider alternative channels of business funding which, although may not come with some of the attractive benefits of a Bounce Back Loan, may actually give your business a better chance of survival. While Bounce Back Loans may be extremely competitive on paper, if you cannot get this money into your business in a timely manner, then these benefits become less relevant. Standard commercial loans are offered by both mainstream high street banks as well as more niche lenders and challenger banks, and these may be a way of getting money into your business quickly.
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