The Coronavirus Business Interruption Loan Scheme (CBILS) is due to end in September, yet income generation is a fraction of what it was pre-Covid.
*Following an extension to this deadline we have provided another update in this blog: Have you heard? CBILS deadline has been extended
On 30th September 2020 the Coronavirus Business Interruption Loan Scheme (CBILS) is due to end. That’s only a few weeks away yet the economy is firmly in recession and for many of us, income generation is a fraction of what it was pre-Covid.
The government cannot continue to prop up the economy indefinitely. The Job Retention Scheme is being phased out, the CBILS application deadline is looming and Bounce Back Loans will only be available until 4 November. Subject to there being a second spike and the government needing to step in again, what does this mean for your business?
Anyone who believes we’ll bounce back quickly to pre-covid trading levels is a braver person than I. There are green shoots of recovery but many businesses have stored up a lot of debt. With the delay in tax payments to HMRC including VAT, corporation tax, personal tax and PAYE as well as Bounce Back Loans, suppliers and even family debt, managing your cash flow is essential to plan what needs repaying in early 2021.
How are you going to repay it? Are your plans based on economic recovery and a V shaped recession? More importantly, what will happen to your business if recovery takes 12-24 months and what will your business look like at that point?
These are complex questions with a number of unknown variables and multiple solutions. If your analysis (i.e. cash flow forecasts) identifies a cash strain on the business in the next 12-24 months, I’d recommend you act now before CBILS comes to an end. CBILS is a challenging arena but successful applications may be more attractive and more forthcoming than traditional commercial lending which will come back in to play post CBILS.
If this is something you need or think you need, please feel free to call me. We can discuss your business plans and whether the need for finance is essential for your business survival. It’s worth noting:
Time is of the essence, be realistic and don’t let this opportunity pass you by!
For more information on Corporate Finance and how we can help find the right funding for your recruitment business click here.
With CBILS due to end, should you have any questions or need any support in applying for funding, please call Stuart Hutchison on 07590 440643 or email firstname.lastname@example.org