How to Convert my Bounce Back Loan (BBL) to a Coronavirus Business Interruption Loan (CBIL)
How to convert a Bounce Back Loan to CBILS? Firstly at the outset of the Coronavirus Pandemic many businesses opted to take out a Bounce Back Loan due to the urgent need for immediate cashflow.
At the time Bounce Back Loans were the only option due to many independent lenders not being accredited to provide alternatives such as the Coronavirus Business Interruption Loan Scheme (CBILS).
Secondly over the past six months there have been many lenders who have gained accreditation to provide loans through the Coronavirus Business Interruption Loan scheme and therefore this has helped increase the options now available.
Thirdly as we end 2020 many businesses are now finding that their Bounce Back loan is now insufficient and more funding is required.
Why convert your Bounce Back Loan?
Many of those same businesses now find themselves looking for further cover and are unable to take out further funding through the BBL Scheme.
The British Business Bank, who manage both schemes, will allow those businesses to take additional funding through the Coronavirus Business Interruption Loan Scheme, as long as this new funding settles the original funding.
Why take out a loan through the Coronavirus Business Interruption Loan Scheme (CBILS)?
The biggest benefit of taking out a loan through the Government backed CBILS is that the directors of the business do not have to provide personal guarantees or security for funding under £250,000.
You can also take funding of more than £50,000, which is the maximum amount through the BBLS.
To make the loans more affordable, the Government will cover the fees and interest for the first 12 months, so no monthly payments for the first 12 months. There is also no fees or charges for early settlement of the finance.
Key Features of the Coronavirus Business Interruption Loan Scheme (CBILS)
- Business Loans from £50,000 to £5mil
- Borrow up to £250,000 without any security
- Great rates, from 1.8%
- Terms up to 6 years
- Interest and capital paid by the government for the first 12 months
- No upfront fees or early settlement fees
Eligibility Criteria for the Coronavirus Business Interruption Loan Scheme (CBILS)
Should you answer yes to all of the following, then you may be eligible for the Coronavirus Business Interruption Loan Scheme (CBILS)
- Is your business UK based?
- Has your business been adversely impacted by the coronavirus?
- Does your business have an annual turnover of up to £45million?
- Is 50% of your turnover from trading activity? (not from investments)
- Is the loan for business purposes?
- Loan is for trading in the UK
- Would your business be viable were it not for the pandemic?
- Has your business been adversely impacted by the coronavirus?
- Is your turnover in excess of £200,000 per annum?
- Has your business been trading for a minimum of 2 years with at least 1 set of accounts filled at companies’ house?
All Star Funding Solutions has a panel of CBILS accredited lenders. We have direct access to lenders portals to quickly submit an application.
We can help your business search for the right business finance in this difficult and uncharted time
How to convert a Bounce Back Loan to CBILS? – Speak to the experts today.
Disclaimer
If the business is unable to repay, the scheme provides a partial guarantee to the lender, not to the business.
The borrower remains 100% liable for the debt.
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