Fintech provider of loans and invoice financing MarketFinance has begun processing Coronavirus Business Interruption Loan Scheme (CBILS) applications.
The business lender was accredited by the British Business Bank as a CBILS lender on 13 May.
The government-backed Coronavirus Business Interruption Loan Scheme, delivered through 60+ British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the COVID-19 outbreak.
The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.
Minimum eligibility criteria for business loans and invoice finance:
- Limited Company or Limited Liability Partnership
Trading for more than 24 months, has a turnover of more than £100,000
- The company sells goods and services to consumer and other businesses
Anil Stocker, chief executive at MarketFinance, said on 13 May: “We’ve been processing large volumes of applications and delivering rapid funding decisions since we launched in 2011, and we’re going to use this foundation to get as much funding out to businesses in this crucial time.
“Fintech was born out of the last financial crisis of 2008, and I’m proud that MarketFinance is now one of the platforms playing such a crucial role in channelling funds to UK businesses ”
CBILS business loans
Under the CBILS, the first 12 months of interest on the loan and any arrangement fees will be paid by the UK Government as a Business Interruption Payment. This means smaller businesses will benefit from no upfront costs and lower initial repayments. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security. SMEs can apply for a CBILS term loan (up to 3 years) between £50,001 and £150,000.
CBILS invoice finance
Businesses looking for cash flow or working capital can get finance on their outstanding invoices (with long payment terms, where they are waiting to be paid on work completed). As with business loans, there will be no arrangement fees or interest charged. SMEs with an annual turnover of up to £45m can apply for a CBILS invoice finance facility (for up to 3 years) between £50,001 and £5m.