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Helping you through the Coronavirus Business Interruption Loan Process (CBILS) for Covid-19

Many small businesses will be looking to apply for loans under the government CBILS scheme which are loans to help you through the current situation and ensure you are ready to do business again when it is all over.

However, in order to apply for these loans you will need to have a certain amount of good financial information available to your/another bank or lender as they will  need to see that your business will be viable and you will be able to repay the loan after this horrible virus departs. NB: You do not have to go to your own bank/lender but if you have a good relationship with them it will help!

Every bank or lender will require differing information but the minimum information we suggest you may require is:

·       A brief update on the performance of your business prior to the onset of the virus –what has been your turnover and profit % in the last 12 months, what business do you have in the pipeline and can this be deferred until the virus is over. What are your future plans?

·       A statement detailing what impact coronavirus will have on your business.

·       A CashFlow Forecast for the next 3 to 12 months. The banks may well stipulate 12 months on forms but in reality, will probably accept 3-6 months (this from one of the ‘Big 4’ banks that we spoke to. This is to determine how much you will need to borrow and should include all your fixed costs which will continue even though you are not trading/trading very little, including any HP or other Third Party finance commitments (Leased equipment for example). If you are ‘topping up’ the Government 80% Job Retention Scheme you will also need to include this.

·       A statement about any other Government support you are exploring including the 80% Job Retention Scheme, deferred HMRC payments, grants etc.

·       A statement of any key assumptions or risk factors which may impact the above.

·       Your last two to three years Financial Accounts (the bank/lender may access these themselves through Companies House but may ask for more detail to back them up. EG: Profit & Loss Statements.)

·       An idea of the period over which you wish to repay the loan to ascertain a suitable repayment schedule (REMEMBER this is a Loan and must be repaid – the government will only pay the interest element plus bank charges for setting up the loan for the first twelve months).

Here at MPH our Business Advisors can support you with this process if you do not have the resources or confidence to go it alone. However, we want to be 100% clear that you are able to access CBILS funds by approaching lenders directly and the above should help give you a ‘heads up’ about what to expect when you make contact with them.

Full information about the CBILS scheme and all other Government Support can be found at:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

We hope to see all our clients survive and thrive through this difficult period and beyond!

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MPH Accountants

We offer a friendly and professional service to our clients. Our client base is wide and varied ranging from small one-man bands to large limited companies, and our business principle is the same in that each client, no matter what size, has their own individual requirements.

Whitstable - 01227 277 667
Thanet - 01843 230 256
Purslea - 01547 578 222
Email: admin@mphaccountants.co.uk