On 17 March 2020, the UK Chancellor announced a series of measures to support UK businesses.
- £330billions of Government guarantees for bank loans.
- CILS (Coronavirus Interruption Loan Scheme) extended from £1.2 million up to £5millon – starting 17th March.
- Funding grants for up to £25,000 for smaller businesses.
How does the CILS work?
Coronavirus interruption loans will work in a similar manner to Enterprise Finance Guarantees (EFG). This means 80% of the loan will be secured against a government guarantee. The lenders may offer an interest free period. The main options to borrow are Overdraft; Term Loan; Invoice Finance; and Asset finance.
How to apply
The starting point is to ask your own bank first. Before you call, do some preparation. Here is a step by step process:
1. Check your eligibility
- UK based business with turnover of no more than £41 million per annum
- Need borrowing proposal
- Confirm they have not received other public support
- Finance terms are from three months, up to 10 years
- How much you need to borrow?
- What is the breakdown of what you need? e.g. Wages, Rent, Insurance, Software, etc.
- How many years this loan is for?
- Who do you owe money? How much?
3. Call the bank
Link to find lenders in your area https://bit.ly/2QrLQZs
Be patient as the wait can be long, possibly 1 or 2 hours.
The bank will process the information and pass to a department who will prepare the loan application. Each bank has its own process and be patient.
4. Who can claim?
- Limited companies
- Each partner of Partnership
We can help
Sterling Finance is open for business to support businesses during this tough time. Our experienced and knowledgeable team is ready to help you. Here is our contact details
Sterling Finance UK Limited
Tel 0161 339 4989