The Chancellor is expected to announce changes (improvements!) to the Coronavirus Business Interruption Loan Scheme (CBILS) either today or tomorrow as the scheme is clearly failing to achieve its objectives.
Many businesses don’t want to take out loans and may not have borrowed before. The requirement for banks to offer their own products first before a CBILS is the wrong way to go. If a business is viable and has been impacted by Coronavirus and needs the funding to get them through this period of time, then they should automatically qualify for CBILS and not a standard product which comes with different requirements, security and pricing.
Businesses are being asked to take on debt that they don’t actually want need through necessity so this scheme has to be fit for purpose, which at the moment it isn’t.
CBILS is not suitable for everyone, but businesses also need to be very careful about what they are taking on. I’ve seen first hand experiences of clients being pushed down multiple, high cost, non-CBILS products, when the client clearly should be advised down the CBILS route as best advise for the client.
Obtaining clear and independent advice is essential for businesses. A well constructed package and plan is vital.
Contact Snowball for help and advice.