Coronavirus Business Interruption Loan Scheme

We’re now an accredited lender under the British Business Bank’s Coronavirus Business Interruption Loan Scheme and are able to process applications for term loans alongside new and existing Invoice Finance facilities.

If you already have an existing Invoice Finance facility with us, please contact your Relationship Manager to apply for a CBILS loan.

If you are new to Ultimate Finance, apply for an Invoice Finance + CBILS term loan facility here.

Apply now
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What is CBILS?

The Coronavirus Business Interruption Loan Scheme, delivered through 50+ British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

The scheme provides Ultimate Finance with a government-backed guarantee to facilitate lending during a time when the borrower may not have passed ‘normal’ lending criteria thresholds. The Government guarantee is to Ultimate Finance (‘the lender’) and the borrower remains liable for 100% of any facility that may be provided.

Important notice: Ultimate Finance are able to offer CBILS facilities alongside Invoice Finance facilities only. Standalone loans will not be considered.

For more information about the scheme, please visit the British Business Bank website here. You can also find answers to frequently asked questions through the British Business Bank’s FAQ here.

Our eligibility criteria

We are now able to provide CBILS-backed term loans from £50k to 500k alongside invoice finance facilities of up to £5m, for both existing clients and new borrowers. Standalone loans will not be considered.

If you have an existing Invoice Finance facility with us and meet the below criteria, please contact your Relationship Manager today.

  • Your client is interested in applying for an Invoice Finance facility with us
  • Their application is for business purposes
  • They are a UK-based business with an annual turnover between £1.5m and £45m
  • Their business generates more than 50% of its turnover from trading activity
  • Their business has been adversely impacted as a direct consequence of COVID-19
  • Their CBILS-backed facility will be used to support primarily trading in the UK
  • They have a borrowing proposal which, were it not for the COVID-19 pandemic, would be considered viable, and for which the provision of finance will enable their business to trade out of any short-to-medium term difficulty

Our full eligibility criteria can be found here.

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If you are new to us and wish to apply for an Invoice Finance + CBILS term loan facility, click here.

FAQs

Ultimate Finance has been accredited to provide CBILS term loans and will be offering these with an Invoice Finance facility but will not be offering standalone term loans.

If you already have an Invoice Finance facility with us, please contact your Relationship Manager. For all new applications, either directly from a business owner or an Introducer, please use our online application form.

Once an online application has been submitted, we will request the following documents to process it:

  • A business plan – template to be provided
  • Financial forecasts (12 months cashflow forecast and, for loans above £100k only, 12 months P&L and balance sheet)
  • Asset and liability statement
  • Most recently filed statutory accounts / management accounts – both current and as of 31/12/2019
  • Sales Ledger and Purchase Ledger – both current and as of 31/12/2019

We will require a debenture and a Personal Guarantee on the Invoice Finance facility as per our normal credit policy. There will be no Personal Guarantee on CBILS term loans under £250,000. Additional tangible security maybe required for term loans above £250,000. More details on our criteria can be found here.

The business is entitled to a Business Interruption Payment to cover payments of interest and other fees related to the CBILS term loan in the first 12 months. This will not cover any costs associated with the Invoice Facility outside of the CBILS term loan structure. The business pays no fees to the Government.

The Bounce Back Loan scheme is for loans of up to and including £50,000, subject to a maximum 25% of turnover, with a 100% government guarantee. The terms dictate 12 months of no interest or capital, followed by a maximum of 2.5% interest per year from year 2 onwards. The business remains 100% liable for the debt. Ultimate Finance is not accredited to provide Bounce Back Loans.

CBILS term loans have a minimum loan value of £50,001, with the other main difference being that the Lender only has a guarantee of 80% from the Government.

A business is not able to take out a Bounce Back Loan Scheme facility if they have been approved for a CBILS facility, and vice versa.

However, a business that has a CBILS facility can apply for a Bounce Back Loan Scheme facility if the Bounce Back Loan Scheme facility will refinance the CBILS facility in full.

Our CBILS accreditation enables us to provide CBILS term loans from £50,001-£500k alongside Invoice Finance facilities of up to £5m, for both existing clients and new borrowers.

The Invoice Finance is a revolving credit facility and the CBILS term loan is for a period of 1-3 years but with no early repayment charges.

We will be in touch within one working day of the business completing the online application.

For the Invoice Finance facility, we charge an ongoing service fee for the management of your ledger, and a discount fee (like an interest rate) for the cash we advance. Our fees are transparent and competitively priced with a risk-based approach, assessed on viability and performance as at 31st December 2019. We will not apply an annual minimum service fee on a new Invoice Finance facility when linked with a CBILS term loan.

Rates for the CBILS term loan begin at 1% per month, with no interest payable in the first 12 months and an initial 3 month holiday on capital repayments. There is no set-up fee and no early repayment charge on the CBILS term loan.

The Ultimate way

We’re here to support you. We make every stage as straightforward as possible.

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Apply online

Fill in our online application if you wish to apply for an Invoice Finance facility with a CBILS term loan.

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We’ll set to work

And we’ll do it efficiently. We only ever ask for the essential information we need to get an offer in place.

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Funds released

Once everything is approved you just need to sign the paperwork. We’ll then complete the process by releasing the funds and making the facility live.

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Resources

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). Full details on CBILS and the list of participating CBILS Lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS

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