Kingsway Asset Finance has received formal accreditation from the British Business Bank, as an approved lender for the Government backed Coronavirus Business Interruption Loan Scheme (CBILS).
The Coronavirus pandemic has put an increased strain on the cash reserves of SMEs across the UK. As an accredited lender for CBILS we will have more funding options available to help clients old and new navigate their way forward.
Kingsway Asset Finance will be offering term loan CBILS funding from £50,001 to £150,000 over two to five years, with no capital repayments for the first twelve months and no interest or fees payable for the first year of the agreement.
We will be offering these new facilities to a panel of selected brokers, who will be contacted directly by a member of our team.
Please note that all applications must be submitted (via referrals from partner brokers) prior to 31st January 2021.
Key benefits of CBILS include:
- Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial payments.
- No guarantees for facilities under £250k: Personal guarantees of any form cannot be taken under the scheme for any facilities below £250k.
- Up to £5m facility: The maximum value of a facility under the scheme is £5m, available on repayment terms up to six years.
- Guarantee to the lender: The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower always remains 100% liable for the debt.
Is your business eligible for a Coronavirus Business Interruption Loan?
If your business fits the following criteria, you could be eligible to apply for CBILS funding:
- UK-based in its business activity, with a turnover of no more than £45m per year.
- Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender.
- Able to self-certify that the business has been adversely impacted by the Coronavirus pandemic.
Proposals submitted to Kingsway Asset Finance will also need to comply with the stipulations of our standard credit policy.
You will not be able to apply if your business is:
- A bank, building society, insurer or reinsurer (but insurance brokers can apply).
- A public-sector body.
- A state funded primary or secondary school.
All applications must be submitted (via referrals from partner brokers) prior to 31st January 2021.
About the Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, 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.
Under CBILS, the first 12 months of interest on the facility and any arrangement fees will be paid by the UK government as a Business Interruption Payment. This means smaller businesses will benefit from no upfront costs and lower initial repayments.
Detailed information on CBILS can be found on the British Business Bank website – Coronavirus Business Interruption Loan Scheme (CBILS).
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). British Business Bank plc is wholly owned by HM Government and is not authorized or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). 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.