We know that there are many businesses looking for Coronavirus Business Interruption Loan (CBILS) funding at the moment and that lenders are inundated with applications. We also know that there is frustration because the money is not getting to where it is needed as quickly as required.
Therefore, we have prepared some practical advice, based on our experience, on what information might be required and what questions you should be prepared to answer. If you are looking to apply for a CBILS loan, it is best to have all the information required ready and prepared before commencing the application process.
Documentation/information required:
Each lender will have their own forms and requirements, but most will require the information listed below or some variation thereon:
- Last 3 years’ full financial statements with detailed P&L account (existing lenders may not require 3 years);
- Last 12 months’ business bank statements (some will require several months’ personal statements as well)
- Up to date management accounts showing year to date performance versus budget to end of Feb 2020 (pre Covid-19);
- Cashflow forecasts for the next 12 months, including assumptions, that demonstrate the funding requirement;
- Short term rolling weekly cashflow forecasts for 13 weeks;
- Details of any current debt held by the business;
- List of assets and most recent asset valuations; and
- Details of the Senior Management Team’s background and experience;
Typical questions requiring clear answers:
- What is the purpose of the funding and how will the funds be used to address the issues caused by Covid-19?;
- What are the costs to be covered by the proposed funding?;
- How much funding is required, over what timeframe, and how has this figure been calculated?;
- Outline the performance of the business in the 12 months pre Covid-19;
- How has Covid-19 affected the business and the sector in which it operates?;
- What are the planned actions post lockdown to recover and get back to pre-Covid-19 performance?;
- Details of actions taken to date to use Government support measures, i.e. furloughing of employees, VAT deferment, Time To Pay etc.; and
- Details of self-help actions taken, i.e. deferral of dividends, cancelling discretionary bonuses, capex etc.
If you require advice or support on eligibility, application or the process, please contact us:
- Nick Johnson, Corporate Finance Partner: nickjohnson@ryecroftglenton.com
- Alex Simpson, Corporate Finance Senior Manager: alexsimpson@ryecroftglenton.com