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Legal firms should consider CBILS for long-term recovery plans

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Published: 30 Oct 2020

With the Coronavirus Business Interruption Loan Scheme (CBILS) closing for applications on 30 November, Iceberg outlines how to combine the loans with other finance to secure the long-term future of your firm.

Many legal firms will be attempting to evaluate their financing requirements over the course of the next few months. However, with the prospect of a second lockdown hanging over the industry, making predictions about future financing needs during such uncertain times is no easy task.

At the same time, it certainly feels like there is a lot to plan for, between deferred VAT and income tax payments, professional indemnity insurance (PII) payments, and salaries post-furlough, it’s important that legal firms make provisions for the future now rather than later.

The UK government recently announced it is extending CBILS, which is now open for applications until 30th November 2020. This offers law firms the opportunity to apply for a loan of up to £5m to cover any cash flow issues over the course of the next few months.

This extension offers legal firms another string to their bow when it comes to planning, in the form of another financial solution that is completely flexible, with no repayments or interest due until the end of the first 12 months of the loan.

In terms of establishing eligibility, there are a number of factors to consider and Iceberg would encourage legal firms to get in touch with their lender to discuss requirements. However, we can shed some light around some common misconceptions around Coronavirus Business Interruption Loans.