On the 2nd November, the Government announced additional financial support for businesses impacted by the Coronavirus pandemic.
These were an extension of the Coronavirus Business Interruption Loan Scheme (CBILS) and the Business Bounce Back Loan scheme (BBL). In addition, they introduced a top-up facility to the BBL. This means if you didn’t take the full amount (25% of turnover) of support available you can top it up to the full amount. For example, if your turnover is 100k you could take a 25k BBL. If you only took 15k of this earlier in the year you can now take the extra 10k.
I’ve had the full amount I am eligible for on a BBL, what other support is available?
There is an option to convert a BBL to a CBILS but the minimum criteria is a £200k turnover with a minimum £50k lending limit. With the BBL having a maximum lend of 50k, you would need a turnover of at least 300k to make a conversion worthwhile.
This leaves a massive gap in government-backed support for smaller companies who have taken the full bounce back loan they are eligible for and don’t meet the turnover criteria for a CBILS loan.
Whilst they are not government-backed, there are funders who will support businesses through this difficult patch with a range of different solutions designed to suit your business.
Invoice finance facilities – Invoice finance is a way of borrowing money based on what your customers owe to your business. It can help you access the cash that is locked up in invoices quicker.
Revolving credit facilities – This is like an overdraft that can help you through tough trading patches
Asset finance – This helps you to spread the cost of any business purchases or improvements
At real5 Finance, we take the time to consult with you. the business owner, so that we understand your business and can design a bespoke solution that will allow you to make an informed decision of the best support for your business.