Funding during uncertain times

The current pressures on the economy (Covid-19, lockdowns, Brexit) have filtered through the entire supply chain, creating a negative impact on the cashflow of even the most viable businesses.

HM Treasury acted early on in the pandemic, introducing the Bounce Back Loan Scheme (BBLS) Coronavirus Business Interruption Loan Scheme (CBILS) and its big brother for larger businesses (CLBILS).

However, with the deadline for applications approaching (January 31, 2021) there is a surprising number of businesses which have not yet taken advantage. But the schemes are worth considering as the attractive rates and subsidised fees make them more favourable than alternative facilities, even bank overdrafts.

Those with BBLS loans may still take advantage of the CBILS scheme and those with CBILS can access additional CBILS funding.

Beyond the government and the banks, there is a broad range of lenders looking to support viable businesses either through secured funding (against commercial property), invoice finance (raises funding from outstanding invoices or applications for payment if contractual in nature in the case of many construction firms), trade finance (funding the purchase of stock to bridge the gap between purchase and sale), and asset finance (spreading the purchase of an asset over a term either in the form of a lease for hire purchase.)

Despite the circumstances, the Access to Finance team in Lancashire has supported many viable businesses to access additional working capital. We are committed and ready to help the county’s SMEs to unlock the finance and funding they need to survive and grow.