Extension of government-backed funding schemes for businesses

The Government has extended the application deadline for Covid-19 financial support schemes, including CBILS (Coronavirus Business Interruption Loan Scheme), CLBILS (Coronavirus Large Business Interruption Loan Scheme), BBLS (Bounce Back Loan Scheme) and the Future Fund, aimed at supporting businesses in light of the pandemic, until 31st January 2021.

Why is now a good time to apply?

Our experience demonstrated a flurry of activity leading towards the first deadline, leaving funders inundated with applications to review and process within a restricted period of time. Businesses should look to start the application process now rather than waiting until nearer the deadline to allow for the greatest chance of a successful application.

Key points to remember on the funding support schemes

Whilst each support scheme has its own eligibility criteria and support package, they share a number of common characteristics including, but not necessarily limited to:

  • Government-backed finance with restricted level of personal guarantees
  • Up to twelve-months capital and interest holiday
  • Ability to refinance existing debt onto Government schemes, to extend repayment terms and take advantage of removing personal guarantees or an interest holiday
  • Flexible repayment terms up to 10 years
  • No impact on credit ratings of taking the finance available
  • Variety of uses including working capital, capital expenditure and acquisitions depending on each funder’s lending criteria 

What are the key aspects of a successful applicant?

Whilst each lender has their own eligibility criteria, applicants should:

  • Be able to demonstrate the ability to repay the level of debt requested before the pandemic
  • Provide detailed cash flow forecasts, underpinned by a pipeline of work, demonstrating both “trading as normal” and “impacted due to Covid-19” scenarios.
  • Provide a strong business plan and explanation of the key value drivers of the Business

Whilst the success of any application is not guaranteed, undertaking a thorough review of the information to be presented allows for a greater chance of success and also reduces the risk of losing credibility should the potential funder want to challenge the information provided.

How we can help

We will work closely with you to manage the full process on your behalf. Our role includes, but is not necessarily limited to:

  • Prepare and review forecasts and bank funding documents
  • Review financial performance for debt serviceability
  • Prepare for and deal with bank feedback

Why DTE Corporate Finance?

  • Proven track record: we have successfully supported numerous clients in various industries, with diverse loan values ranging from £100k – £2.4m
  • Experts’ knowledge and network: we work with many financial institutions and are in tune with different lenders criteria and geographical regions
  • Only the best option for you: we look further than just your incumbent bank to connect you with the most suitable lenders for your criteria
  • High success rate: DTE’s role in preparing the funding document ensures your business is displayed in the best light – you only get one chance when presenting to the funder

If you are considering your funding options, including one of the Government financial support schemes, please contact us today for a free, no-obligation consultation to explore your funding needs and discuss next steps.

*This article was originally posted on DTE website: https://www.dtegroup.com/news/covid-19-business-support-hub/extension-of-government-backed-funding-schemes-for-businesse/