COVID-19 Business Interruption Loan (“CBIL”) Scheme

The UK government is pressing the banks to take a lighter touch with CBIL applications, albeit still lend responsibly. In other words, the banks should be lending to viable businesses.

There is a direct correlation between successful CBIL applications and credible financial records and cash flows that evidence the viability of a business. In our experience, far too many businesses are failing to provide the necessary evidence to support their applications, resulting in costly delays and even unsuccessful applications.  The attached article sets out some basic accounting and finance related steps that every business should take before making an application for CBIL.

Key highlights of the attached Article 
  1. Viability – to get CBIL, the business has to demonstrate that it ‘was’ and ‘will’ continue to be a viable business.
  2. Financial records – past and projected financial records will demonstrate the viability of the business.
  3. Working capital and cash flow – as with any loan, the business will have to set out why it needs the loan (though this may be obvious), how the loan will be used and when it will be repaid.  Usually there is no capital holiday on CBIL’s, hence the capital repayment will need to be factored in the cash flows.
 How can we help?

  We can assist by offering:

  1. Review service – we are currently reviewing the financial records for clients and their professional advisers to ensure that the criteria for CBIL is met.
  2. Assistance – we are supporting clients and their professional advisers where they do not have the capacity or the experience in making a CBIL application.
  3. Preparation – we are preparing the financial records directly for clients.
  4. Fees – in certain circumstances, the fee can be contingent (subject to draw down), alleviating further cash flow hardships (note: our capacity to do contingent work will naturally be limited).


If you have any queries in relation to the above or would like assistance with making a CBIL application, please contact us.

Above is correct at the time of writing.

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