Since its introduction CBILS has been criticised for not getting enough cash out to enough businesses who need it quickly enough. According to the banking lobby group, UK Finance, there have been in the region of 28,500 applications for CBILS of which just over 6,000 have been approved to the value of £1.1 billion. But it recognises that there are limitations to processing applications due to the situation with the COVID-19 lockdown

British Chamber of Commerce data confirms that the slow start in firms successfully accessing government support schemes has continued – just 2 per cent of respondents reporting they had successfully accessed the CBILS this week, with 9 per cent of respondents unsuccessful. Of those who were unsuccessful, slow or no response from lenders was cited as the main reason. This suggests firms could still be having difficulty accessing the support through banks, despite the announcements on 2nd April designed to simplify and speed up the CBILS process.

With those figures in mind there is a good chance you might be having trouble accessing CBILS yourself. However, there are some things that you can do to maximise your chances of success in getting the financing you need to see you through this crisis and beyond.

It’s not all bad news – 15 per cent of respondents said they had successfully accessed grants for small businesses, a rise of 7 per cent on the previous week. Of those who missed out, the overwhelming majority of those who were unsuccessful reported they did not meet the criteria.

Here’s what you need to do:

Have the right information

SMEs need to be prepared i.e. have the right information to hand. You should have a robust business plan in place. What was true before the crisis remains true – if your business is in good shape, coronavirus notwithstanding, you are more likely to be able to gain funding.

Make sure you have last filed accounts, cashflow forecasts (this will confirm your exact borrowing requirement), up-to-date management accounts, information as regards how the pandemic has impacted your business, details of any existing lending, bank statements to hand and details of any Time to Pay arrangements.

Approach your existing bank/lender first

Even before you consider applying for a CBILS loan with a different lender, you should approach your own bank. They will be quicker to respond to your application. They will know you and will already have some of the necessary information about your business on file.

Do remember that you will still need to provide your existing lender with a large part of the above information, just as you would if applying to another funder.

Consider a two or three-horse strategy

Think about who next to approach for funding. That is not to say that you should abandon your original choice of lender – it will be counter-productive to change horse mid-race and will extend the amount of time taken to process your application and get your funding. Rather, run applications in parallel.

Compare rates between lenders. Take note of what interest rates you are quoted and what period of capital free repayments will they offer you. The big four high street lenders are offering 12 months, others 6 months, others none, so check.

This is not a quick process but if you are prepared with the right information, you have a better chance of success and you are more likely to have your application processed quickly, even if it is declined (at least you know).

Banks are trying to help

Like other industries across the country, staffing levels at banks and other lenders are lower than usual as employees self-isolate at home. Coupled with the increased demand for assistance from customers, this means that it may take longer to speak to a member of staff at a bank branch or call centre. So, if you are looking to access CBILS you are advised to look at your lender’s website to find out the latest information on the support available and how to apply. This information is being updated regularly to provide you with guidance and to help you access the finance you need.

You can also consider approaching other lenders, including the other 45+ accredited CBILS providers, if you are unable to access the finance you need in the first instance. Check their criteria, in amongst the mix are regional lenders, asset finance and invoice lenders, lenders not currently taking on new clients and lenders who aren’t lending!

More information

For help and advice on the availability of financial support for your business please call us on 0203 327 0567 for a free 15-minute problem-solving chat or email [email protected]