Finance that is free?

Finance that is free? They always say that if an offer is too good to be true then it is. This one is unlike the Nigerian Prince who has millions to give away in return for your bank details and pin number, it really is the very best commercial finance product I have seen in […]

August 14th, 2020

Finance that is free?

They always say that if an offer is too good to be true then it is.

This one is unlike the Nigerian Prince who has millions to give away in return for your bank details and pin number, it really is the very best commercial finance product I have seen in ~~years~~ ever.

Coronavirus Business Interruption Loan – CBILS

The CBILS scheme has been around a few months and is going to end pretty soon. We have seen a real change in how the scheme has been used, a shift from necessity to opportunity. Let me explain;

At the outset we saw businesses look to borrow to support cash flow, add to their working capital and fund overheads. It was the necessity that drove those businesses to use CBILS
We then saw a drop off in applications, the immediate need was met and the scheme was parked in the minds of those who had used it and those that didn’t feel they needed to
Now, we are seeing those businesses who recognise an opportunity. Those who realise that using the CBILS scheme offers real, tangible and cash positive benefits

The Benefits

CBILS has many forms, so let me share a few things that our clients have done. This is all about opportunity and making the most of a scheme that isn’t going to be here forever.

Purchasing a commercial property – Yes, you can use CBILS as a commercial mortgage and get all the costs and interest paid in the first year, this means the valuation, arrangement fees and your own legal fees*
Refinancing personally guaranteed loans – Using CBILS to refinance borrowing and remove their personal guarantee liability
Refinancing business borrowing secured on their home
Using funds as a year-long loan for a property or another short-term project, effectively using ‘free’ money

Bear in mind that there are no repayments on these facilities for 12 months. Yes, that means you need to be budgeting to start repayments in 2021, however, it is also a year of grace and a year to put that money to good use.

CBILS & The Banks

This is where the message is often lost. Just because your bank has said no, or your bank has offered you a lower level of funding than you wanted doesn’t mean you cannot get the funding you want. There are loads of CBILS lenders, all doing different things with it.

If your bank makes you an offer that doesn’t quite meet what you want, look at our alternatives. Remember also that;

You can have more than one CBILS loan
Just because you took a bounce back loan doesn’t mean you cannot replace it with a CBILS facility
Just because your bank won’t do a CBILS loan for you to buy or refinance property doesn’t mean you can’t do it, it just means that bank can’t

If you want some examples of what other businesses have done then check out these case studies.

For more info or to look at your options then get in touch or call on 01293 541333.

By Dave Farmer

Want Some Examples?

CBILS Commercial Mortgage

CBILS Remove Personal Guarantee

Increase a Bounce Back Loan

David Farmer

Over 30 years finance experience. Former credit underwriter, founder of Lime Finance Solutions in 2012. Multi Award winning business, featured in Sunday Telegraph, Parliamentary Review, Sky TV and others. Regular contributor to press and business associations. FCA Authorised, ALIBF Qualified. Specialist in Commercial Mortgages, Business Lending, Property and Development Finance.