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CBILS and CLBILS - preparing a strong application

Updated 17 April: ICAEW's Corporate Finance Faculty explains how to strengthen your application for funding under the Coronavirus Business Interruption Loan Scheme (CBILS) or the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and expertise from ICAEW member firm, EY. SCHEME NOW EXTENDED TO 30 November 2020.

OFFICIAL GUIDANCE: Coronavirus Business Interruption Loan Scheme (CBILS)
Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Is your business eligible?

CBILS and CLBILS are temporary UK lending schemes for SMEs and larger businesses respectively, supported by the UK government during the COVID-19 outbreak. Businesses can apply via the accredited lenders:

Check if your business is eligible for CBILS and see the key features of the scheme including on personal guarantee here.

Check if your business is eligible for CLBILS and see the key features of the scheme here.

How much support does your business need?

When applying for financial support for your business you need to work out how much to apply for – this will be after taking into account all the measures that you can take to manage the business’s cashflow.

See our working capital checklist on reforecasting your business’s needs, and working out how much to apply for.

Talk to your adviser about the most appropriate form of funding for your business – both CBILS and CLBILS cover term loans, overdrafts, invoice finance and asset finance.

Checklist for preparing a funding application

You will need to submit a detailed application for the funding you need to the lender.

Each accredited lender will have their own forms and requirements but you can do a lot of useful groundwork to understand what will be relevant to a lender.

The list below sets out typical requirements and documentation in funding applications. It was developed by Chris Lowe, partner, and Amy Griffiths, Jane Hartley and Zoe Clarke, directors, EY Capital and Debt Advisory. Chris is a member of the board of ICAEW’s Corporate Finance Faculty.

Essential information
State the quantum of your request, purpose and timescale over which it will be required.
Submit three years' audited financial accounts if applicable. Key if you are approaching a new lender.
Present management accounts showing year to date performance against budget to end of February 2020 (pre-COVID-19).
Look forward forecasts with assumptions (at least next 12 months), demonstrating funding requirement. Given inherent uncertainty, scenario analysis should be provided to show different levels of sensitivity/duration of the COVID-19 interruption and recovery.
13-week short-term rolling cash flow forecast.
Detail of actions taken to date to use Government support measures i.e. Tax ‘time to pay’; VAT deferment; furloughing of employees; actions around rent payment, grants and sector specific measures etc.
Detail of ‘self-help’ actions taken ie, deferral / freeze on dividends, capex deferral, working capital management etc.
Planned actions post lockdown to demonstrate how you intend recover and get back to pre-COVID-19 performance.
Provide details of any current debt held by the business, to the extent not provided by bank being approached i.e. loans, mortgages, invoice discounting, hire purchase or lease arrangements.
List of assets and provision of most recent asset valuations.
Recommended information
Provide details of investment made in the business to date, either by shareholders or third parties.
Details around the Board and management team / experience.
Any other assets available to be offered as security.
Source: EY Capital and Debt Advisory

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