PCW Consulting Group helps businesses apply for CBILS

1 One would expect viability to have been evidenced over the course of preferably, the prior three years, excluding the impact of Covid-19 (an average is acceptable) and evidence will be required, which we would expect to be in the form of historic financial statements.

2. Latest Management Information/Accounts is also very helpful. Do remember that your lender, if it is your own bank, will be matching cash in the bank against your unaudited management information as a sense check on any figures you submit.

3. Affordability. The business needs to evidence it can afford the additional debt. We do that based on your latest 2019 accounts. The idea being that if the business could afford it in 2019, it should be able to afford it once the pandemic is over.

4. Loan amount. How much do you need and how has this been calculated? A full breakdown of how you got to the amount. It needs to be detailed so somethings like: fixed costs of £xx wouldn’t be enough.

Please note, that while other finance providers payments are not excluded, it might be frowned upon if banks are being asked to fund other financiers payments. They need to be contacted to see what financial assistance they can give, i.e. payment holidays.

5. Finally, part of the relationship manger’s application for some banks is to confirm that you have explored all avenues of support, especially those from government, such as HMRC Furlough Scheme, Local Authority Grants such as Business Rates rebates of £10k for most and £25k for retailers.

6. Enclosing a copy of the company’s latest 3 Year Business Plan is not being asked for but, in our experience, is a very big bonus point.

7. The above is all about evidence, justification sand business case but what is also proving fruitful, is to pull some of the pertinent points in the above into a supporting letter which tells a story of the business extremely briefly, what it was doing, how this crisis is impacting on the business, mitigation measures that are being undertaken, and this includes outwards thinking about diversification of products or service offerings, and/or escalating positions with clients and markets that are still in demand.