Could CBILS lending help your business?

24th February 2021

Whatever challenges your business is currently facing, Finance For Enterprise’s team of knowledgeable and experienced Investment Managers are here to support you and your future business plans.

Combating the economic impact of COVID-19 has posed many challenges for businesses across the region. From the outset of the national lockdown last March, many have been forced to adapt and change the way in which they operate.

Following the Prime Minister’s recent announcement, many businesses will naturally turn their attentions back to re-opening their doors and time is running out to access financial support through the Government-backed Coronavirus Business Interruption Loan Scheme, commonly referred to as CBILS.

Launched last March, the CBILS loan scheme was developed to support businesses across the UK, to provide the vital cash needed to help businesses overcome the challenges posed by COVID-19. Since its introduction, Finance For Enterprise has helped businesses to access in excess of £12 million. In some cases, the funding has provided a vital lifeline to help company owners protect jobs, for others accessing CBILS lending has offered a golden opportunity to innovate, evolve and respond to the challenges posed by the COVID-19 pandemic.

Examples of businesses Finance For Enterprise has supported through the CBILS programme have included helping companies to overcome supply chain problems, enabling businesses to invest in new equipment or services as they adapt to life under lockdown and in one more unusual case, helping a gin distillery switch its production lines to manufacturing hand sanitiser.

Finance For Enterprise can provide businesses with between £50,001 and £250,000, which is repaid over five years.  The scheme supports businesses of all types of businesses, although they must have been trading before 1st March 2020, with 50% of turnover achieved through trading activity.

Loans can be used for any legitimate business purpose, but the deadline for applying for CBILS support closes on 31st March 2021.

At Finance For Enterprise, an experienced Investment Manager will guide you through the CBILS application process and once your application has been approved, the funds will be available immediately.

The CBILS loan scheme is one of a number of business support options which have been made available to businesses to support them during the COVID-19 pandemic. For smaller businesses, with a turnover of up to £200,000, the British Business Bank’s Bounce Back Loans Scheme (BBLS), which is delivered by high street lenders, provides loans up to a value of £50,000. 

Businesses may apply for either CBILS or BBLS funding, but they can’t have both. Any business which has taken out a BBL but requires additional capital can apply for a CBILS loan, but the application should be for a value sufficient to include repayment of the BBL.

Deciding whether to borrow money to support your business is a decision which requires careful consideration. To find out more about the help and support Finance For Enterprise can offer to your business contact: 0330 014 3455 or visit: http://finance-for-enterprise.co.uk/cbils

What help is available to new businesses?

For new businesses, accessing finance can be one of the greatest challenges they face and with many newly self-employed people excluded from Government support, sourcing finance has been particularly challenging for start-ups.

Businesses which began trading after 1st March 2020 are not eligible to access either CBILS or BBILS lending, however, Finance For Enterprise does provide a range of tailored business lending support aimed at helping new entrepreneurs to succeed.

Finance For Enterprise is a delivery partner for Start Up Loans UK, which can help new entrepreneurs access up to £25,000 in loan funding.  Start Up Loans are available to both pre-start and newly launched businesses which have been trading for less than two years.

One business owner to benefit the scheme was Barnsley-based plumber Richard Adlington, who became the recipient of the 1000th Start Up Loan delivered by Finance For Enterprise.

Having spent more than 20 years working in a senior role with a leading commercial catering equipment company, Richard found himself facing redundancy when orders plummeted during the national lockdown.

He returned to the plumbing skills he first mastered as an apprentice and launched his own plumbing business, Radlington PHS. After refining his business plans, he turned to Finance For Enterprise to secure the vital funds needed to allow him to purchase a van, as well as providing him with funds to support his cashflow to navigate his way through Tier 3 restrictions and two national lockdowns.

Investment Manager Gillian Pickard specialises in supporting start up businesses at Finance For Enterprise and helps new entrepreneurs to secure the funds needed to transform business ideas into commercial reality:

“Building a business often requires a significant cash injection and many new entrepreneurs are left despondent when their bank managers don’t share their levels of enthusiasm for their new business ideas.

“One of the most common mistakes new entrepreneurs can make is under-estimating the amount of money a business will need, especially during its first few months. When applying for start-up lending we typically look to support entrepreneurs who can demonstrate a clear understanding of the market, and have a solid business plan and cashflow forecast.”

Businesses like Sheffield’s The Steel Cauldron, which secured Start Up Loan funding through Finance For Enterprise which was vital in helping the business to transform empty premises into a haven for all things magical, whilst Rotherham-based beauty salon, The Only Way is S66 was able to purchase specialist laser hair removal equipment as a result of the funding provided by Finance For Enterprise. To find out more about Start Up Loan funding, visit: https://finance-for-enterprise.co.uk/start-up-loans/

To find out more about how Finance For Enterprise can help your business, call: Tel: 0333 014 3455 or visit: https://finance-for-enterprise.co.uk

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