Over the last two weeks there have been many announcements made by the government regarding support for businesses during these difficult times.
In recent days we have been in constant contact with relevant people across our panel of lenders and the British Business Bank, to answer some of the questions we have been getting from customers.
Lending confidence & CBILS
Numerous lenders across our panel have made changes to the way they are operating as there is no pretending this situation is very difficult, which lenders must remain responsible in the funding that they approve. We are being advised by some of our panel lenders that they remain open for business, but eligibility criteria is changing daily.
This does suggest that there is still confidence to lend despite the volatile situation and we are striving to find approvals for our customers with lenders. As this situation changes and develops Portman Asset Finance will continue to deliver up to date news surrounding finance, CBILS and any further government economic announcements.
There were reports in the media across weekend that the CBILS was not being used by the banks and lenders as it was intended. Approved banks and lenders perhaps not feeling confident to lend despite the loan scheme being designed for that reason.
We have been assured from lenders on our panel that they are taking CBILS applications and checking them against their current eligibility criterion. Lenders have advised that they will update their guidelines on the scheme more frequently. However, if they can offer funding on normal commercial terms without having to make use of the scheme, they will.
CBILS new lenders
In addition to the current confidence situation within the market, recent news from the British Business Bank stated: “We are accelerating accreditation for some existing lenders to be able to provide additional variants of the CBILS scheme, and accepting applications for new lenders to undergo accreditation.”
The first part of this statement is particularly interesting as lenders already accredited might for example, only offer asset finance, might get approved for term loans, or vice versa, should they wish to offer it.
Furthermore, the latter part of the statement included positive news that more lenders are being fast tracked through accreditation which should help with the demand and give business owners more finance options to choose from. For the CBILS to function efficiently and be a success it needs a vast array of lenders offering as many product variants as possible.
All of this coincides with information we have received from many lenders we have spoken to on our panel. A large number have confirmed they are applying for accreditation and hope for approval over the next couple of weeks.
Dealing with demand
Speaking with lenders and customers we realise that things may be taking longer than usual. There has been unprecedented demand for the Coronavirus Business Interruption Loan Scheme, and we are trying our absolute best to get applications approved with participating lenders.
We do believe, whilst we appreciate the urgency, as new lenders get accredited CBILS applications should become quicker to process and the demand will be a lot more manageable.
After last week’s very busy period with lenders and the British Business Bank implementing CBILS, we have had several of our early approved deals sign off with one of our participating lenders, which is great news that applications are starting to move forward. There may still be delays with demand going forward, but we are confident things are moving in the right direction and will get better as we move throughout April.
We’re here to help
Portman Asset Finance currently has 6 accredited lenders on the panel, with that number expecting to increase over the coming weeks. Whilst we are experiencing high levels of demand, we are still open to speak with businesses about their funding requirements to get applications ready as efficiently as possible. We are in a great position to help businesses get the very best finance deal on the CBILS, or without it.
If you haven’t already, check your eligibility below or call us on 01604 761276 to discuss finance options. Stay safe everyone.