Invoice Finance Coronavirus Business Interruption Loan Scheme (CBILS)

Following the Budget announcement on 11 March 2020 the British Business Bank are offering the Coronavirus Business Interruption Loan scheme through participating lenders.

What is the Coronavirus Business Interruption Loan Scheme (CBILS)?

 

CBILS is a new scheme that can provide facilities for a range of Business Finance products to smaller businesses across the UK who are experiencing lost or deferred revenues and seeing their cash flow disrupted as a result of the COVID-19 outbreak.  Aldermore is accredited for CBILS via the British Business Bank and able to support existing and new clients with Invoice Finance. 

The CBILS scheme provides Aldermore and other accredited lenders with a government-backed guarantee enabling us to provide Invoice Finance facilities to SMEs to support their business.

Please note: This scheme is just one of a number of measures announced by the Government and full details of the temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19 can be found here.

 

For more information directly from the British Business Bank please click here

What are the key features of CBILS for Invoice Finance?

The CBILS is available to both existing Aldermore Invoice Finance Clients and new prospective clients.

There are two possible bolt-on products available to an SME which can be taken in conjunction with an Invoice Finance facility^; however, please note you can only qualify for either the Top Up or Term Loan.

  • Top-Up facility*
  1. A Top-Up on Prepayment up to 30% to a maximum of 100% of Gross Debtors
  2. Top-up available for a maximum 3 year term
  3. The maximum lending value of £5m
  • Term Loan*
  1. Sits alongside the client's invoice finance facility with Aldermore
  2. For a maximum term of up to 6 Years
  3. Term Loan maximum amount is £5m (Minimum Term Loan of £50k)

*The amount you may be entitled to depends on the outcome of your application and specific business situation, you will be subject to Aldermore eligibility terms and criteria.

On the CBILS scheme your business can benefit from:

  • No guarantee fee for SMEs to access the scheme - No fee for smaller businesses
  • Interest and fees paid by Government for the first 12 months  - The Government will make a Business Interruption Payment to cover the first 12 months of interest payments, so smaller businesses will benefit from no upfront costs and lower initial repayments


Please note:

  • As with any other commercial transaction, the borrower is always responsible for repayment of the full value of any facility supported by CBILS.
  • The guarantee is to the lender and not the small business.

 

^Trade Finance is excluded from the scheme 

How do I know if my business is eligible?

To be eligible for a facility under Aldermore Invoice Finance CBILS:

  • Your application must be for business purposes
  • Facility must be used for an eligible purpose
  • You must have a viable business proposition and loan affordable
  • Be UK based in your business activity with an annual turnover of no more than £45m
  • UK Based and may not support specific export activity
  • Must be within state aid threshold
  • Your business must generate more than 50% of its turnover from trading activity
  • You must trade in the UK, and the facility must be used to support trading in the UK
  • Must have been profitable for the last 12 months and must not be a business in difficulty
  • Have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable by Aldermore, and for which we believe the provision of finance will enable your business to trade out of any short-to-medium term difficulty


If Aldermore can offer finance on normal commercial terms without the need to make use of the scheme, we will do so.  Additional Aldermore criteria will be required, subject to due-diligence and credit checks, a personal guarantee may be required on lending over £250k.

How do I apply?

Aldermore is accredited for the CBILS (Coronavirus Business Interruption Loan Scheme) within Invoice Finance via the British Business Bank.

If you would like to find out more about the scheme, you can contact us directly on 0371 7051 565 or complete an enquiry form and we will get in touch. 

If you are an existing Aldermore Invoice Finance client, then please contact your Relationship Manager to discuss your options. 

Additional Information

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).

British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

Full details on CBILS eligibility criteria and the list of participating CBILS lenders can be found on the British Business Bank website here.

Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.