Explore more insights

Chancellor extends a lifeline to businesses

CEO and Co-founder of Capitalise, Paul Surtees, shares his thoughts on the extension of the CBILS application deadline

Paul Surtees Sep 24, 2020

Capitalise experienced a surge in funding enquiries on the platform last week, in particular for CBILS facilities.  As the summer holidays ended, more businesses had taken steps to assess their longer term financing requirements, but time was rapidly running out for them before the deadline of 30th September. 

Therefore, we welcome the Chancellor’s announcement that he will extend the Government backed loan schemes to 30th November 2020 for businesses to make their applications to lenders.

In addition, the CBILS and Bounce back loans can now be extended to a 10 year repayment term and if businesses are struggling to repay their bounce back loans, they can opt for interest only repayments or, in critical situations, suspend all repayments for up to six months.

These loans already provided very attractive terms and this move has allowed cashflow within businesses to be supported even more. The Chancellor did state that a successor guarantee loan programme was being developed for applications from 1st January, but we believe these terms are unlikely to be repeated for most businesses in the open market, once the schemes end.  


Refined underwriting process for CBILS

More lenders have begun to accept CBILS applications over the past few months and their increased experience has allowed them to refine their underwriting processes. This larger marketplace provides us with a greater opportunity to use our platform to connect businesses to the most appropriate lenders and we are now regularly seeing accountants receive offers for their clients within days.

As the market has become more efficient and businesses have become more confident to assess their future requirements, it would have been short-sighted to close the scheme so soon. 

Over the next twelve months, many businesses will have significant outgoings, such as fulfilling obligations for tax and VAT deferrals, starting repayments for new loans and possibly recommencing their business rates from April.  Nearly 1.2million SMEs have taken a bounce back loan with an average facility size of £29,000, less than the average directors salary. Those businesses who had already received a smaller bounce back loan may wish to consider converting that into a larger CBILS facility, whilst the scheme still remains open to build the necessary capital buffer required.  

I would encourage all accountants to take this extra opportunity to speak to all their clients again and to ensure that they are adequately capitalised for the months ahead.  Times are still very uncertain and many businesses will currently be considering whether their trade is likely to be affected if further lockdowns are instigated.

I look forward to assisting more accountants over the coming weeks as we take this opportunity and work to ensure they are able to support their clients’ to secure their future.

At Capitalise we have access to over 30 of the accredited CBILS lenders, and we are here to support you in helping your clients. With the deadline on the horizon, now is the time to be assisting your clients in planning for the future #leavenobusinessbehind

alternative finance
invoice finance
case study
trade finance
contract finance
working capital
startup loans
fashion finance
merchant cash advance
future accountant
product of the month
women in funding
partner of the month
business tips
live session
international women's day
covid19 coronavirus
corporate finance
accounting firm
asset finance
hire purchase
credit score
business funding
business credit score
south africa
small business
business loan
property finance
commercial mortgage
credit imporvement
spring budget 2023
small businesses
spring budget
commercial mortgages
trade debtors
cash flow
truck finance
late payments
lorry finance
building a financial safety net
trade debtor days
bridging loan
credit checks
interest rates
balance sheet
bad debt
company credit checks
debt collection
credit control
check company credit
business loans
instant offer
credit scores
credit review service
company credit check
commercial property
revolving credit facility
line of credit
recovery loan scheme
growth guarantee scheme
business finance
Follow Us
Sign Up to Receive Updates

Signup to our newsletter

Have insights about the accounting community sent straight to your inbox. Sign up to our newsletter.