Not too long ago, we announced that The British Business Bank has accredited MarketFinance to provide revolving credit facilities and business loans through the Coronavirus Business Interruption Loan Scheme (CBILS). Today, we’re officially open for CBILS applications!

To make things quick and easy, we’ll break down everything you need to know about applying for CBILS funding through MarketFinance. We’ll answer these questions:

  1. What is the Coronavirus Business Interruption Loan Scheme?
  2. What CBILS funding solutions can I choose from?
  3. Am I eligible for CBILS funding?
  4. How do I apply for a CBILS revolving credit facility?
  5. How do I apply for a CBILS loan?
  6. What else should I know about CBILS funding?

What is the Coronavirus Business Interruption Loan Scheme?

The CBILS was introduced by the government to provide financial support for SMEs across the UK. With COVID-19 causing disruptions in almost every sector, thousands of businesses are looking for funding to ease the pressure on cash flow. The CBILS enables accredited lenders, like MarketFinance, to provide more funding to more businesses so they can weather the storm.

Here are some key features:

  • SMEs can apply for up to £5 million in funding, repayable over up to 6 years
  • This funding comes with an 80% government-backed guarantee
  • The government will cover the interest and fees for the first 12 months, so the business doesn’t have to

You can find out more about the Coronavirus Business Interruption Loan Scheme as a whole on the British Business Bank’s website.

What CBILS funding solutions can I choose from?

We’re accredited to provide two different kinds of funding under the CBILS, giving you the flexibility to decide what’s best for your business. You can opt for a hassle-free CBILS loan or choose a flexible CBILS revolving credit facility.

CBILS revolving credit facility

With cash flow already being squeezed, this is no time to be waiting out lengthy payment terms – or even relatively reasonable payment terms for that matter. With a CBILS revolving credit facility, you can get an advance against your outstanding invoices to access the money that’s owed to you much faster. Because you won’t be stuck waiting for your debtors to pay, you won’t have to worry about gaps in your cash flow.

Normally with our non-CBILS invoice finance, you’d pay service/subscription and listing fees plus interest on the funds you’ve advanced. But with a CBILS revolving credit facility, the government pays the fees and any interest on your behalf. This makes a CBILS revolving credit facility an incredibly affordable way to ensure steady cash flow as you get back on track and head towards business as usual.

Here are some of the finer details:

Amount of funding: Facilities from £50,001 up to £5 million

Interest rate: Monthly interest between 0.55% and 2.5%

Term: You have two options. You can choose a flexible facility that you only use as and when you need it to advance funds against a few select invoices. Or, you can opt for a subscription facility that gives you ongoing and regular access to funds from as many invoices as you like.

What you pay: With a CBILS revolving credit facility, the service/subscription and listing fees as well as the interest are paid by the government for the first 12 months. Note that the government won’t cover any additional fees – for example the fee you might pay in the case of a default.

Security: We may take a debenture. We may also take a Personal Guarantee if you’re applying for a CBILS revolving credit facility of £250,000 or more.

CBILS loans

There’s no denying that it’s been a long hard lockdown but, with summer rolling in and many restrictions rolling out, it’s time to get back on track. With a CBILS loan, you could give your business a hassle-free cash boost to ramp up your route to new normal.

With a normal loan, you’d borrow a lump sum and pay it back over an agreed period of time with interest at an agreed rate. With a CBILS loan, the government will take care of the interest for the first 12 months so you can focus on taking care of business.

Here are some of the finer details:

Amount of funding: Loans from £50,001 up to £150,000

Interest rate: APR between 1.92% and 6.34%

Term: Choose to pay back your loan over 2 or 3 years

What you pay: When you repay a loan, the amount you pay is made up of the principal (i.e. the funds you borrowed) and interest (paid on the funds you borrowed). With a CBILS loan, your monthly/weekly repayments will only include the principal for the first 12 months. This is because the government makes the interest payments on your behalf. After the first 12 months, your monthly/weekly repayments will be made up of both the principal and the interest. There’s no charge for repaying your loan early.

Security: We’ll need an individual with significant control of the business to be a homeowner. Note that we won’t attempt to gain control of your property in the case of a default.

Am I eligible for CBILS funding?

Businesses operating in any sector can apply for CBILS funding, as long as you’ve been adversely impacted by the coronavirus pandemic. There’s also eligibility criteria set out by the British Business Bank as well as some specific criteria set out by each accredited CBILS lender.

You can apply for CBILS funding through MarketFinance if:

  • You’re a Limited company or LLP registered in the UK
  • You sell goods or services to other businesses (B2B), if applying for a CBILS revolving credit facility
  • Your turnover is between £100,000 and £45 million
  • You’ve filed a minimum of 2 years accounts at Companies House, if applying for a CBILS loan
  • One or more of your company’s directors lives in the UK
  • Neither the company nor any of its directors are currently facing any insolvency or bankruptcy procedures
  • The company doesn’t have any unpaid CCJs worth more than £250 if applying for a CBILS loan or £2,000 if applying for a CBILS revolving credit facility
  • Your application would’ve been viable (based on our normal eligibility criteria) even if there wasn’t a coronavirus pandemic
  • The company has been adversely impacted by the coronavirus pandemic

Remember, we’re still offering our non-CBILS loans and invoice finance which could be an option if your business isn’t eligible for these solutions through the CBILS. Click here to find out more.

How do I apply for a CBILS revolving credit facility?

Simply click here to start your application. You’ll need to answer a few questions about yourself and your business which should only take about 3 minutes. You’ll also need to submit the following documents, so make sure you have them on hand:

  • Last 3 months’ bank statements
  • Latest statutory accounts
  • Management accounts for the year ending 31 December 2019, including P&L and balance sheet

If you’re applying for a CBILS revolving credit facility over £100,000, we may also ask you for a few extra documents. For example:

  • Aged debtors report
  • Aged creditors report
  • Invoices, purchase orders or contracts
  • HMRC information e.g. outstanding balances for VAT or PAYE

If approved, we’ll email you your offer with a link to accept it and give you a call to answer any questions you may have. You’ll be able to sign the required legal documents online straight away so we can set up your facility and give you access to funds.

How do I apply for a CBILS loan?

Simply click here to start your application. You’ll need to answer a few questions about yourself and your business which should only take about 3 minutes. You’ll also need to submit the following documents, so make sure you have them on hand:

  • Last 6 months’ bank statements
  • Latest statutory accounts
  • Management accounts for the year ending 31 December 2019, including P&L and balance sheet

If approved, we’ll email you your offer with a link to accept it. You’ll be able to sign the required legal documents online straight away so we can advance your loan.

What else should I know about CBILS funding?

We understand that applying for finance can be a bit complex – especially through a newly introduced government scheme. Here are the answers to a few more CBILS FAQs:

Can I get both a CBILS revolving credit facility and a CBILS loan?

Yes, you can apply to get both as long as you don’t have a CBILS facility with any other lender.

I’m an existing MarketFinance customer. Can I apply for CBILS funding?

Yes! If you’re an invoice finance customer, you can apply for a CBILS loan. You can also enquire about switching to a CBILS revolving credit facility. If you already have a MarketFinance business loan, you can apply to refinance your loan through the CBILS. However, you won’t be able to top up your existing loan with a new CBILS facility.

How can I get in touch with MarketFinance about CBILS funding?

If you’re new to MarketFinance, the best place to start is our dedicated CBILS webpage. Here you’ll find information about our CBILS funding solutions, eligibility criteria and regularly updated FAQs. Or if you’re ready to start your application, you can click here to apply for a CBILS revolving credit facility or click here to apply for a CBILS loan.

If you’re an existing MarketFinance customer, we recently sent you instructions for contacting your account manager directly. If you didn’t receive the email or are having trouble contacting your account manager, please email pmteam@marketfinance.com for anything you need.

If you’re a MarketFinance introducer or accountant, please email partner@marketfinance.com or reach out to your partnerships manager directly. If you don’t currently work with MarketFinance but would like to refer your clients for CBILS funding, click here and someone from our Partnerships team will get in touch with you shortly.

You can also visit our COVID-19 Impact Support Hub for general business advice and information about other government lending support including The Future Fund and Bounce Back Loan Scheme.