CBILS: Support for businesses struggling to access emergency cash loans

It’s been nearly three weeks since the UK Government published its Government-backed Coronavirus Business Interruption Loan Scheme (CBILS) rescue package. But, despite recent reforms to the scheme, including easing the onerous eligibility criteria and doing away with unreasonable personal guarantees, many businesses say they are still struggling to secure payments.

While a fifth of small businesses plan to apply to the CBILS to help them through the weeks and months ahead, results from the second Coronavirus Business Impact Tracker, published by the British Chambers of Commerce, reveal that most businesses have not yet successfully accessed funds from the CBILS via their banks and other lenders.

However, with cashflow remaining an urgent concern for many, businesses must be able to access the Government loans they so urgently need at this time.

With this in mind, we are pleased to report that Beavis Morgan group company Cadence Advisory, a UK leading independent specialist asset based lending advisory (ABL) firm, has once again achieved a successful application to the CBILS.

Working closely with the CFO of a business services firm, Cadence Advisory successfully supported the client in applying for and obtaining agreed funding through the scheme. There are however key learning points which businesses need to bear in mind when applying for the scheme. John Weeden, Cadence Advisory Partner, explains:

“What we have learnt to date about applying to this new scheme is that it is imperative that applications to the CBILS are comprehensive and complete. Adding to this, certain lenders are requesting that borrowers engage with advisers in order to streamline the process.”

In the most recent instance of a successful application, Cadence Advisory’s involvement enabled the CFO of the business to achieve a positive response within 72 hours.

How Cadence Advisory assisted in the successful application:

  • Reviewed current ABL arrangements in order to identify opportunities to flex the existing debt-facility framework
  • Devised and reviewed daily cashflow models, ensuring that all working capital assumptions and recent Borrower and Government initiatives were appropriately captured
  • Produced and reviewed written applications to the incumbent ABL lender and the incumbent relationship bank
  • Reviewed lender term sheets, sought clarifications, and negotiated improved terms where practicable.

“We are very pleased to have completed another successful application to the CBILS in short order and we are confident of achieving more swift results as we continue to assist businesses with their CBILS applications,” John adds.

If you or a client are considering applying to the Government loan scheme to support your business during this unprecedented time, please contact your usual Beavis Morgan Client Partner or get in touch with John Weeden or Karl Holmes at Cadence Advisory for advice and assistance.