Whilst we await further details for the new Coronavirus Business Interruption Loan Scheme many are asking for clarity on applications.

These will need to be directed through your current bankers, assuming they are participating in the Scheme. Whilst the government, by guaranteeing 80%, appear to be supporting the debt in terms of security (although the finer details of this are still to be announced), the banks still need to satisfy themselves that your borrowing proposal is sound.

The debt must ultimately be repaid and lenders will be asking themselves whether “under normal circumstances” your business would have sufficient cash flow to repay.

Therefore:

Do assess the fixed costs that would need to be paid to keep your business afloat during these difficult coming months – including staff costs;

Do ensure you have updated historic data in the form of your Annual Statutory Accounts and Management Accounts to provide to your bank; and

Do consider your cash flow position prior to the crisis so debt serviceability can be proved.

The banks are clearly looking to support businesses at this time but do need quality data to hang their hats on as responsible lenders.  If you present an application with all the information they need, decisions will be quicker at this extremely worrying time.

Let us know if we can help and we wish all those that find themselves in this unfortunate position the very best.

Our contact details are:

info@forwardfinancials.co.uk
07780 336952 Delphine Paterson FCCA ACIB
07780 336956 Raemy Singh FCA

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