• Access to a range of revolving and term finance options including:
• Business loans and asset finance (terms of up to ten years)
• Overdrafts
• Invoice finance and revolving facilities (terms of up to three years)
Is CBILS right for my business, and do I qualify?
• Eligibility is limited to companies with an annual turnover not exceeding £45 million
• Only available to those without adequate security to obtain funding directly from the lender under ordinary circumstances. If your company meets the banks existing lending criteria, then borrowing must be done in the normal way
• Must have a 'sound borrowing proposal', which would be considered viable by the lender outside of current conditions
• Lender must be convinced the borrowing will help the company trade out of the current situation and remain in business in the long term
• Funding will not be granted to prop up an already failing business
COVID Corporate Financing Facility (CCFF)
Larger corporates, for which CBILS is not appropriate, can access funding via the COVID Corporate Financing Facility.
• Only available to investment grade businesses
• Administered by the Bank of England on behalf of HM Treasury
• Short-term finance option
• Funding through the issuing of commercial paper of up to one-year maturity
• Financing offered on terms comparable to those in the period before the COVID-19 outbreak
• Scheme will operate for an initial 12-month period, although this may be extended
• Six months' notice will be given before the facility is removed
• Designed to help support the payment of wages, suppliers, or to increase general cash flow
• Applications to be completed on the Bank of England website
• Scheme in operation since Monday 23 March 2020
What type of borrowing is available?
• Short-term commercial paper
• Minimum £1m
• Maximum loan amount will be determined by the Bank of England and will likely be considered on a case-by-case basis
• Terms of one week to 12 months with drawings able to be rolled over
Is the CCFF right for my business, and do I qualify?
• Available to non-financial businesses only
• Only firms that are deemed to make a 'material contribution' to the UK economy will qualify
• Must be able to demonstrate that the company was in sound financial health prior to COVID-19 and any current financial difficulties are a direct result of this ongoing crisis.
• Minimum credit rating required. This will be based on credit ratings prior to the emergence of the coronavirus outbreak
• No requirement to have issued commercial paper previously