I thought at the start that the Coronavirus Business Interruption Loan Scheme (CBILS) would be a brilliant tool to help businesses navigate the economic mire of Covid-19.
It hasn’t quite worked that way.
Many businesses have found the application process difficult and banks (perhaps not unreasonably) found it took time to organise themselves to accept and process applications.
There was a furore about personal guarantees which has now been largely resolved but as the scheme settles down the approval rate for CBILS loans is still only around 50%.
Heralded as a flagship policy back in March, CBILS doesn’t appear to be as effective as we all hoped. Perhaps, as more lenders come on board, processes improve and businesses have a slightly better idea of what the future may hold, CBILS will start to do the job it was intended to do.
Bounce Back Loans
For smaller businesses, the Bounce Back Loan is a more immediate solution. Bounce Back Loans are limited to 25% of turnover up to a maximum of £50,000 and are very simple to apply for.
Our feedback from clients is that Bounce Back Loans can be a lifeline but also many business owners are wary about applying because they don’t want to take on debt. Remember – loans must be repaid!
Cashflow is everything
There are two types of business.
Those that do not need a cashflow model. And all the others.
Coronavirus doesn’t change this, it amplifies it – more businesses need a cashflow model.
We have a number of blogs and articles on cashflow which might help you to get started if you help:
- A gory cashflow model is a useful cashflow model – the bloodier the better
Getting paid on time – your company is NOT a source of alternative finance
My cashflow is a mess and I’m running around like a headless chicken
You can’t get started too soon on a cashflow model – and you’ll need one to apply for CBILS.
Take care!
Michael
Sales | Margins | Profit | Cashflow
