Given the major impact of the current situation on many businesses there is likely to be a major rush of funding applications for government support though the CBILS. In order to ensure your business gets funding as quickly as possible the quality and comprehensive nature of your application will be crucial.
Below is a list of the key information that your business is likely to need to have prepared before approaching lenders.
|Coronavirus Business Interruption Loan Scheme Check List|
|Information||Is it already available?||Do I need to prepare it?|
|Build a 1-3 page document that covers: What does the Business do? (product or service description, geographical area of operation, typical client/customer, history of business e.g. when was it established)Who runs the Business?How has the Business been affected by Coronavirus? (customer demand fall, problems with supply chain, invoices not being paid by customers, employees not available etc.)What funding does the business require? How Much / how long / what structure (term loan, asset finance, overdraft, invoice financing)|
|Financial & Legal Information|
|Cashflow forecast covering at least 13 weeks showing funding needFor larger loans, prepare a full P&L, cashflow and balance sheet forecast for loan termEnsure Management Account for the year so far are up to date and available. They need to include P&L, Balance Sheet and KPIs where possibleIf you have large trade creditors and/or trade debtors include the detailed ‘aged creditors/debtors’ for each|
|Last 3 years Detailed Filed Accounts|
|Last 6 months Bank Statements|
|Loan documents for any other loans currently in place|
|If applying for invoice financing:Example contract with clientFull current debtor listingCalculations of average debtor ageList of clients (or example clients if you do not have recurring or long term contract revenue)|
|If the business owns property prepare a note on the current value of the property and balance of any mortgage|
|Business incorporation documents (available at Companies House or through talking to your accountant)Incorporation CertificateAny name change certificateArticles of associationLatest Capitalisation table (a table showing the business shareholdings as they currently stand)|
|Director & Shareholder Information|
|Proof of ID for each Director and Shareholder (e.g. Passport or Driving License)|
|Proof of Address for each Director and Shareholder (e.g. Copies of Utility Bills from last 3 months)|
From discussions with some of the British Business Bank’s key lending partners, business owners
will need to demonstrate:
- That their business was viable before Coronavirus
- How the business has been affected by the virus
- How much funding does the business need?
- What security is available, if any
Demonstrating the experience of the management team and the plan the business has to safeguard the business during this period (e.g. is working remotely an option in some form or another?) will strengthen applications.
When preparing the financial information, it is important to ensure that it provides support to the notion that the business was viable before Coronavirus and to the amount of funding that the business is seeking.
In the cashflow forecast, if you can demonstrate the effect of your safeguarding plans, in the form of improving cashflow, this will further strengthen your case for funding.
Director & Shareholder Information
From experience, it tends to be Director and Shareholder information that causes delays when raising funding. You should therefore ensure that not only is all this information to hand but that the addresses on your ID and Utility Bills correspond and that you provide proof of address history for at least the past 3 years.
If the Directors and Shareholders have personal wealth, it may be worth providing a Statement of Assets and Liabilities, thus demonstrating to the lender that the business is well supported by its owners.
It is possible that lenders will ask further questions, but the information we have highlighted above will provide sufficient detail to lenders to at least express their interest and potential cost for the loan.
For further help and advice in support of your business during the current emergency, please email your normal Client Manager in the first instance.