Applying for CBILS? Your five-step guide on how to prepare

Growth Lending is now an accredited provider of the government’s Coronavirus Business Interruption Loan Scheme (CBILS), which was created to support British companies through the Covid-19 pandemic. The scheme closes for applications on 31 March 2021.

Thanks to the deep expertise of the three lenders that comprise the Growth Lending group – BOOST&Co, GapCap and KX Media Capital – we are able to offer three products under CBILS: revolving credit facilities, invoice discounting and term loans.

We can provide funding from £100,000 to £5m to UK SMEs. The government guarantees 80% of each loan and covers interest and fees for the first 12 months.

Before you get started, we’ve put together a five-step guide for our existing and new customers, all of whom are eligible for CBILS, on how to prepare.

1. Check that your business is eligible

To secure CBILS funding, companies must meet the British Business Bank’s eligibility criteria. Before you apply, check that your firm fulfils the following requirements:

  • Must be adversely affected by Covid-19 (must self-certify)
  • Must be a limited company or LLP registered in the UK
  • Must be trading in the UK
  • Must be an SME (fewer than 250 employees and a maximum turnover of £45m; if there are subsidiaries, these numbers apply to the group)
  • One or more of the company’s directors must live in the UK
  • Must not be in one of the following sectors: banks, insurers and reinsurers (but not insurance brokers), public-sector bodies or state-funded primary and secondary schools. Additionally, Growth Lending will not be supporting businesses in the construction sector
  • Must not be a business in difficulty as of December 2019
  • Application would have been considered viable before Covid-19
  • CBILS term loans must be used to support activity in the UK (the firm does not have to be UK-registered and can have foreign owners, but cannot be a holding company)
2. Think about how to use CBILS funding

Funding may be used for working capital, for investment (including mergers and acquisitions) or for refinancing or consolidating existing debt.

As our name suggests, Growth Lending is strongly focused on growth. We will support qualifying firms that want to use CBILS funds to maintain existing growth strategies or to implement new projects made possible in the current climate, such as expanding or buying an existing UK business.

3. Prepare the documents we require

Each application for CBILS funding – via any of Growth Lending’s three CBILS products – must be accompanied by the following:

  • Last full filed financial accounts
  • Last six months’ business bank statements, on bank headed paper
  • A P&L/cash flow forecast for the next 12 to 18 months
  • Management accounts from within the past six months (P&L and balance sheet)
  • December 2019 management accounts/statutory accounts
  • A summary of the impact of Covid-19 on the business
4. Gather the KYC documents we need to see

We need a copy of each executive director’s passport. We also require proof of address for directors, dated within the past three months.

5. Choose your product and apply

First, select the type of CBILS facility you would like. The three products available from Growth Lending are:

Revolving credit facilities

A flexible line of credit that unlocks funds tied up in your balance sheet and strengthens working capital

Funding amount: £100,000-£5m

Contract length: 2-3 years

Interest rate: 8%-14% p.a.

Security: first-ranking debenture, no personal guarantees

Invoice discounting

A facility against your sales ledger that boosts your cash flow position

Funding amount: £100,000-£5m

Contract length: 2-3 years

Interest rate: 8%-14% p.a.

Security: first-ranking debenture, no personal guarantees

Term loans

Designed to provide an extended funding runway and capital to achieve next-level growth

Funding amount: £750,000-£5m

Contract length: 3-5 years

Interest rate: 8%-14% p.a.

Security: first-ranking debenture, no personal guarantees

When you’ve chosen your preferred CBILS facility, click to get started:

• Revolving credit facilities application form

• Invoice discounting application form

• Term loan application form

Our online application form takes no longer than ten minutes to complete. You are able to sync your accounting software or manually upload the required documents.

Got everything you need? We look forward to hearing from you soon.

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