CoronaVirus Business Interruption Loan Scheme

As at today, 20th May 2020 there are 76 accredited lenders offering CoronaVirus Business Interruption Loans, these can be found on the British Business Bank web site.

One curiosity is the absence of Handelsbanken, their catch line ‘A bank that puts customer satisfaction first’ appears a little thin as some of their customers struggle to obtain funds under the CBILS

Many of the accredited lenders will only deal with their own customers and others will only offer facilities if wrapped up in invoice or asset finance. Some have financial restrictions and/or geographical limitations.

Given Handelsbanken operate a branch network, and have a profile far larger than many of the accredited lenders this seems strange.

Hopefully they will be able to contribute soon.

Bounce Bank Loans

A local business to Stratford applied yesterday (5th May) to Lloyds for a £50k Business Bounce Back Loan under the scheme which went live on 4th May. The facility was approved and the money was credited to the businesses bank account today, 6th May.

I appreciate the facility is 100% backed by the government, although there are still risks to the lender but I think credit should be given to the Government for this and other Coronavirus Business Interruption Loans. Likewise, in this case, credit to Lloyds for the speed with which the loan was delivered.

Its vital the economy is kept going in order for a basic infrastructure to exist as and when we come through this crisis.

Fraud Management

Some years I ago I delivered courses to an assortment of bankers and invoice financiers; a key element was entitled ‘The 6 ‘V’s of Fraud Management’, those all important ‘v’s being Verification, Validation, Value, Vision, Variations, Vigilance.

These remain as valid today as they were then and it’s really important that no elements are forgotten during the current crisis.

I’ve seen some loans lately that reflect poorly on the lenders involved as it looks as though any credit policy in force has been, at best, diluted, at worst, ignored.

Coronavirus Bounce Back Loan Scheme

  • Launching 4th May
  • Loans to businesses, from accredited lenders of £2,000 to £50,000
  • Terms up to 6 years
  • Government guarantee 100%
  • No fees or interest in first 12 months
  • Businesses must be UK based, negatively affected by Coronavirus and have been a viable enterprise pre outbreak
  • If already claimed under CBILS then cant apply, but if you have already borrowed (under £50,000) under CBILS, amount can be transferred to Bounce Back Loan Scheme

More information to follow