Stockport accountants warn firms not to miss out on CBILS funding

The Corporate Finance team at Stockport accountants, Hurst, are urging local businesses to apply for the Coronavirus Business Interruption Loan Scheme (CBILS) before the 23rd September application deadline.

Hurst’s corporate finance team has so far helped clients access £17 million of emergency funding during the pandemic. CBILS financing has provided over £13 billion to around 60,000 small and medium-sized businesses nationwide. The scheme allows businesses to seek loans of up to £5 million on terms up to six years, 80% underwritten by government should the business fail.

With the 23rd September deadline for applications approaching, the Stockport accountants are urging businesses who may be considering the scheme to apply, with loans taking up to four weeks to process. Head of Corporate Finance at Hurst, and head of the firm’s Covid-19 task force, Nigel Barratt said:

The scheme has been a key element of government support for SMEs impacted by Covid-19.

“My team has supported clients in sectors such as travel, retail, construction and manufacturing, and the finance has been a real lifesaver for businesses whose revenue dropped dramatically, even to zero, and the outlook was incredibly uncertain.

“Our strategy has involved supporting clients in a variety of ways, from the preparation of detailed cash flow forecasts to helping prepare their applications or advising on the scheme’s requirements.

“Through our understanding of the CBILS scheme and knowledge of the banks’ requirements, we’ve helped ensure that clients receive their money quicker and with less hassle. We have found the banks to be very supportive.

“The creation of high-quality financial forecasting tools has been of additional benefit to clients in making decisions about all areas of their businesses, and to develop contingency plans.

“Although it may seem the worst is over, businesses need to consider how their cash position will be impacted if we have another lockdown, and what happens when furloughing ends in October.

“They should be making a realistic assessment about the next few years, and apply for a CBILS loan if they are likely to face ongoing financial challenges from Covid-19.

“With the scheme due to end soon, companies should not wait until the last minute to make applications, as we believe there is likely to be a significant increase in demand leading up to the deadline.

“Initially, businesses with high levels of accumulated losses were unable to access CBILS.

“However, following a change to the criteria, companies in this category with fewer than 50 staff and turnover of under £9m may now be eligible. Businesses in this position should reconsider applying.”