It looks likely that the Covonavirus Business Interruption Loan Scheme (CBILS) will be open for applications from today. At this stage we do not know all of the criteria for a successful application but we do know the information required to apply.

In order to get a proposal into the correct format the following information will be required by lenders:

• A description of the business activities, customers and directors
• Last 6 months business bank statements
• Last set of FULL accounts (to include P&L)
• Up to date management accounts (P&L and balance sheet)
• Up to date schedules of debtors and creditors
• Details of taxes owed to HMRC (corporation tax, VAT, PAYE)
• Explanation of how Coronavirus has affected business and what loan will be for
• Explanation of what measures business has taken to manage downturn in sales (lay-offs, furlough etc)
• Details of any planned equipment purchases with copy of quotes
• Cashflow forecast (email me for a free template if required) showing how much funding is required and how and when it can be repaid
• Personal income and expenditure analysis of directors (including measures that have been taken to conserve cash such as a mortgage break)
• Security offered

The accredited lenders in the Scheme are on this partner list from the British Business Bank. Remember that lenders will be inundated with applications and most lenders will no longer have the infrastructure to handle this volume of enquiries, particularly from small businesses.

In making an application the more information in the list above you can provide the better. Lenders will use the fact that information is missing as a delaying tactic and prioritise applications that are furnished with complete information.

The free cashflow template is a simple version that you can complete yourself. Some lenders may require an integrated set of financial projections comprising a profit and loss forecast, cash flow forecast and balance sheets. If you would like a spreadsheet model to produce an integrated financial projections please contact me.

You may consider making your application via a broker as some lenders will prioritise applications from these sources. Alternatively there are online ‘brokers’ such as Capitalise (www.capitalise.com) and Funding Options (www.fundingoptions.com) through which applications can be made.

Not all lenders are part of the Scheme; the digital banks such as Tide and Starling have been excluded as has Funding Circle. We are also hearing that some lenders are withdrawing from the Scheme because they consider any lending, even with a government guarantee, to be too risky.

It is not going to be easy – or quick – to secure borrowing under the Scheme. If you need help please book a call with me at https://calendly.com/noelguilford/cbils.

Noel Guilford