Given the government’s record for announcing schemes which economists had never expected from a Conservative Government, they could completely surprise everyone again and the criteria for EFG+ could be wildly different to the predictions above. However, it is widely accepted that any new scheme is unlikely to be as preferable as the current CBILS and CLBILS terms.
The government will need to provide a scheme to facilitate future lending on a commercial basis, where they can still support those businesses who’s proposal encourages growth in the economy, but where there is a shortfall in tangible assets for security.
To be successful, this new scheme needs to ensure it provides both lenders and borrowers with terms which are acceptable, so several of the elements should mimic the CBILS scheme rather than the EFG scheme.
If there is security available for a lending proposal, then the business will be required to turn to the normal commercial lending products available in the wider market.
All lenders have undergone a massive shift during this pandemic. Tier 1 lenders have been forced to cope with a huge demand on their resources, both capital and internal, at a time when they had streamlined their business banking teams. They are expecting this drain on their time to continue - most banks have recruited to strengthen their Recovery and Collections teams as their focus will be to support the millions lent over these past few months. Their appetite for new lending may be restricted by liquidity issues, regulatory requirements and the more practical issue of time.
Those fintech and alternative lenders who didn’t offer CBILS or Bounce Back Loans in great numbers have found that the demand for other financial products has plummeted. Several have had to restructure and make redundancies. The financing landscape has needed to change to cope with the ‘new normal’ too.
How Capitalise can help
In this year alone, we’ve seen both how much business owners need help raising capital and how quickly the ways to access it have shifted.
Businesses and their accountants will need to keep up with the availability of products and lenders in the market over the coming months.
Capitalise helps accountants identify and uncover where to focus their efforts to grow their business advisory services, removing the guesswork as to how to best help their clients raise, recover and protect capital.
Our capital advisory solution brings together 100+ lenders, debt recovery and tax solutions into a single platform.
Now accountants can open up the world of possibilities for their clients.
Christmas on Capitalise
If you'd like to carry on the conversation about how we can help you to help your clients please book in a consultation. We'll explore how to use Capitalise to help your clients prepare for 2021, we'll also send you a Christmas hamper for simply attending.