A robust business plan is the secret of accessing business funding. That's the advice from business growth experts Inspire, who – despite the coronavirus lockdown – have been helping members and non-members to navigate the advice coming out of central government.
The Coronavirus Business Interruption Loan Scheme was announced by the government last Friday (March 17).
Chancellor of the exchequer Rishi Sunak said £330 billion was being made available for businesses, with more if required.
"If demand is greater... I will go further and provide as much capacity as required. I said whatever it takes, and I meant it," he promised.
The fund can provide facilities of up to £5 million for smaller businesses with annual turnover of no more than £45 million who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.
CBILS is delivered by the British Business Bank by more than 40 accredited lenders and partners.
But there is no guarantee that applications will be granted. "The borrower must have in place a proposal showing that, were it not for the current pandemic, the business would be viable," said Rob Perks, chief executive of Inspire.
"The lender needs to be sure that the provision of finance will enable the business to trade out of any short-to-medium term difficulty."
Inspire has issued a checklist for businesses considering an application to the Coronavirus Business Interruption Loan Scheme:
- Your application must be for business purposes
- You must be a UK-based SME with annual turnover of up to £45 million
- Your business must generate more than 50 percent of its turnover from trading activity
- Your CBILS-based facility will be used to support primarily trading in the UK
- You wish to borrow up to a maximum of £5 million.
"Clearly, in the current situation it will be vital to include a section on your plans for getting though the Covid-19 measures," said Rob.
"If you require further help with an application, please call us."
Inspire can be reached on 01225 355553