Many businesses are concerned about cash flow, and have asked for help in navigating the government funding options that are being made available. We answer your questions below. Call our free helpline on 08000 862 819 if you need advice.
Back to our Covid-19 Hub.
What government support options are available for my business?
How do I know if my business meets the criteria for business rates relief and how do I claim it?
What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
What is the latest guidance on CBILS?
What is the Covid Corporate Financing Facility?
How can you work with funders to alleviate liquidity problems?
What should I do if my business is at risk of having its finance pulled?
How can I protect my cash flow?
What support can the banks and the private sector offer?
How can HCR help me access the support available for my business?
There are a range of options including Bounce Back Loans, CBILS, CLBILs, the Future Fund and the Covid Corporate Financing Facility. All now extend to 31 January 2021 or beyond.
Read our summary table for what is available, the eligibility criteria and procedure for claiming.
Last updated 16 November 2020
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Answered 27 March 2020
As a result of Covid-19 the government has forced many businesses to close. In addition to other measures the government has brought in, businesses in certain sectors will be eligible for some form of rates relief in the 2020 to 2021 tax year.
The list of eligible business types and the relief available to them is set out in this article.
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Answered 19 March 2020. Updated 3 April 2020
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
It is provided by the British Business Bank via more than 40 accredited lenders and will offer financial support to SMEs across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the Covid-19 outbreak. The scheme provides the lender with a Government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. The borrower will always remain 100% liable for the debt – it is not a grant. The Government will also cover the first twelve months of interest payments and lender-levied charges.. The maximum value of a facility provided under the scheme will be £5m. To find out if you are eligible and for more information, visit:
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils
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Last updated 20 November 2020
As of 2 November, the government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 January 2021.
On 3 April 2020, whilst we await details of the update to CBILS on the British Business Bank (“BBB”) website, the key overnight changes announced by Government are as follows:
(sub head) What type of guarantee is the Government providing?
It’s important to fully understand the true nature of the guarantee being offered. The Government doesn’t guarantee 80% of the loan. It merely guarantees the bank’s losses after normal recovery processes have taken their course.
Given the uncertainty over the length of the current lockdown, businesses should be considering accessing these facilities (as well as other government support measures) to ensure they have sufficient liquidity to support the business during this time.
Further details to follow once the details of the scheme revamp have been published on the BBB website
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/
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Answered 19 March 2020 Updated 20 November 2020
Update: On 22 September 2020 the Bank and HM Treasury confirmed that the CCFF will close to new firms applying to become eligible on 31 December 2020.
Eligible issuers that are already signed up to the CCFF at 31 December 2020 will continue to be able to issue new CP until the closure of the CCFF in March 2021.
Original answer: The Covid Corporate Financing Facility is for much larger ‘investment grade’ businesses.
The CCFF (the Facility) will purchase newly issued short term (less than 12 months) Commercial Paper (CP) in the primary marketto help businesses bridge through Covid 19-related disruption to their cash flow.
The Fund will purchase CP issued by companies (including their finance subsidiaries) that make a material contribution to economic activity in the UK (UK incorporated companies, including those with foreign-incorporated parents and with a genuine business in the UK, will normally be regarded as meeting this requirement). The CP will need to have the following characteristics:
Financial service companies do not appear to be eligible.
More details are available here:
https://www.bankofengland.co.uk/news/2020/march/the-covid-corporate-financing-facility
You should note that both CBILS and CCFF are still borrowings and so the borrower will be responsible for repayment. As such, cashflow/debt servicing forecasts should still be prepared and bear in mind the impact, not just of the next few months while we are all living with Covid-19, but the debt position of your company as things start to return to
normal.
Answered 19 March 2020
You have a range of options – some of the most important are:
this.
All of the above may be made easier with Government support.
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Answered 19 March 2020
We all hope that lenders will not be trigger-happy, but make yourself familiar with your obligations so that you can comply with them as far as possible and avoid defaulting, or potentially defaulting.
lender.
Answered 2 April 2020
Here’s our non-exhaustive “cash preservation checklist” with entries which every manager has an opportunity to influence:
Business owners and managers have never been under greater pressure or scrutiny. While the government is moving forward with plans to suspend wrongful trading sanctions during the Covid-19 crisis, your fiduciary and other duties to act in the best interest of the company
continue.
What support can the banks and the private sector offer?
Answered 23 March 2020
Unlike the 2008 financial crisis, Covid-19 represents a massive demand-side shock to our economy, and so lenders are still lending. A number of mainstream banks have dedicated support pages and we have provided links to some of these below:
Speak to your bank at the earliest opportunity if you are concerned about the effects of Covid-19 on your business. You should be discussing options such as capital repayment holidays or reductions, short term facilities or increased credit limits.
Consider short term facilities – a number of lenders (not just the mainstream funders listed above) offer short term, working capital facilities which could support your business. We work with a great number of such liquidity providers and can work with your business to access such funders. Options can include invoice finance facilities, business credit cards, merchant cash advances etc.
Also consider alternative debt providers, who offer different sources of capital. We have strong links to many of these institutions and can assist you with introductions and any subsequent capital
raises.
Answered 3 April 2020
We can help you by: