- Lending: MarketFinance approved for accreditation as a new lender under Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank.
- Products: Businesses will be able to apply for loans and revolving credit facilities, both accredited under CBILS.
- X-factor: Advanced, tech-based risk model to process online applications quickly and provide faster decisions to businesses; getting more money to businesses in need.
- SMEs: Open to all eligible businesses with a minimum turnover of £100,000.
13th May 2020, London: Fintech business lender MarketFinance has today been accredited by the British Business Bank as a lender under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS).
The Coronavirus Business Interruption Loan Scheme, delivered through 60+ British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the COVID-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.
From today, businesses can immediately express their interest for a CBILS loan or revolving credit facility through MarketFinance via its website here. MarketFinance will be able to receive and process CBILS applications in the coming days.
Minimum eligibility criteria for business loans and revolving credit facilities through MarketFinance:
- Limited Company or Limited Liability Partnership
- Trading for more than 24 months, has a turnover of more than £100,000
- Company sells goods and services to consumer and other businesses
Anil Stocker, CEO at MarketFinance, commented: “Businesses are looking to trade their way out of this crisis and CBILS allows them to unlock funding they might not have found otherwise. Here at MarketFinance, our technology and risk underwriting platform is at the heart of what we do. We’ve been processing large volumes of applications and delivering rapid funding decisions since we launched in 2011, and we’re going to use this foundation to get as much funding out to businesses in this crucial time.
“Fintech was born out of the last financial crisis of 2008, and I’m proud that MarketFinance is now one of the platforms playing such a crucial role in channelling funds to UK businesses.”
Under the CBILS, the first 12 months of interest on the loan and any arrangement fees will be paid by the UK Government as a Business Interruption Payment. This means smaller businesses will benefit from no upfront costs and lower initial repayments. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security. SMEs can apply for a MarketFinance CBILS term loan (up to 3 years) between £50,001 and £150,000.
Revolving credit facilities
Businesses looking for cash flow or working capital can get a CBILS facility backed by their outstanding invoices (with long payment terms, where they are waiting to be paid on work completed). As with business loans, there will be no arrangement fees or interest charged. SMEs with an annual turnover of up to £45 million can apply for a MarketFinance CBILS revolving credit facility (for up to 3 years) between £50,001 and £5 million.