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Why choose HGH?

Good Debt vs Bad debt

Posted: 26th Aug 2020 by Clair Watmore Business Advice General, cashflow, Coronavirus, Corporate Finance

The British Business Bank has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended by two months to 30th November 2020 for lenders. So far, applications still have to be submitted to lenders by businesses by 30th September, although there are many campaigning for this to be extended.

How does it work?

This decision has been welcomed as many businesses have not yet considered their longer-term future cashflow requirements and this scheme is particularly attractive.  Most CBILS facilities include some capital repayment holidays, low interest rates compared to most other forms of commercial lending, and there are no personal guarantees required by lenders, more than one if necessary,  up to each £250k of lending. 

The maximum amount a business can borrow under this scheme is 25% of a business’ pre-Covid turnover and it must be able to demonstrate it was viable before the lockdown.  We can help you assess whether you meet the criteria. 

How can HGH help?

As the scheme has been rolled out over the past few months, more accredited lenders have launched products and we are now confident that we have access to the widest possible range of lenders and products available in the market, and we can assist you to prepare your application. 

We are able to produce cashflow forecasts if you are concerned about your future financial commitments and whether your business’ projected profitability can ensure you can meet these obligations, plus also be available to fund growth.  

Many businesses have lost cash reserves and the natural working capital cycle between your debtors and creditors is stretched, so get in touch if you would like some help to understand how you will be able to invest to grow your business again. We are part of a campaign across the accountancy profession to ensure we #LeaveNoBusinessBehind, so please do speak to us.

Watch this space

CBILS may yet be extended again in the coming months, or it may develop into another product, but as nothing is certain in this current climate, please do take action sooner rather than later whilst we know this scheme is definitely still available.  It can certainly provide much more attractive terms than other forms of commercial lending which you may be restricted to if you have to attempt to secure facilities at short-notice, once this scheme has ended.

Get in touch with our team: 01904 655202 or email enquiries@hghyork.co.uk