The Analysis Comment
SMEs are unaware of CBILS deadline’
As the deadline approached for government-backed business loans, research reveled a lack of knowledge
Anil Stocker Chief executive, MarketFinance
Bounce Back loans, the most popular HM Treasury support measure, used by SMEs are running low, finds our latest research. These SMEs are aware they can get more HM Treasury support by applying for larger loans through the Coronavirus Business Interruption Loan Scheme (CBILS) but did not know when the deadline was. Over 1.2m SMEs took on a Bounce Back
loan to pay their suppliers (39% of SMEs did this) and bolstered their business by setting up ecommerce and online shopping channels (29% reported doing this) to attract new customers. However, they only have an average of
£9,106 remaining of their Bounce Back loan and the majority expect this will run out later this month. Promisingly, 6% have already repaid their Bounce Back loan.
CBILS appetite At the time of writing the CBILS initiative was set to conclude at midnight on 30 September 2020 with applications submitted before this deadline being valid for processing until the end of November.
Most SMEs (76%) would be keen on having a CBILS facility ‘on ice’ in case they need it later in the year in anticipation of larger bills, taxes due towards the end of the year
The majority of SMEs (77%) are aware of
the larger loan scheme, CBILS, and 68% know they can refinance their Bounce Back loan using that facility. Most SMEs (76%) would be keen on
having a CBILS facility ‘on ice’ in case they need it later in the year in anticipation of larger bills, taxes due towards the end of the year. However, critically, almost two-thirds
(63%) are not aware of the deadline (end of September) by when they should apply for this.
Financial well being Many SMEs (77%) believe they will only hit 50% of their 2019 revenues. Two-thirds are still waiting to be paid for work they did pre-lockdown amounting to £33,906, on average. An improvement from June 2020 when
they were waiting for £148,917. Looking ahead to the end of the year, they
do not anticipate a festive rush. Over half (56%) believe seasonal demand will be lower than last year owing to the ongoing impact of COVID19.
Future and Brexit SMES are fearful of more disruptions as 2020 draws to a close. Two- thirds (65%) reported a second mass lockdown (as COVID-19 cases increase) leading to supply chains being impacted causing delays in sales and payments as a cause of major concern. On Brexit, two-thirds of SMEs believe that a no-deal exit presents
huge risks for their business. Chief among these are having an available workforce, not having
the information to guide them on how to do business and the impact on supply chains at borders. (Q12) MarketFinance is accredited to lend under the Coronavirus
Business Interruption Loan Scheme, providing term loans from £50,001 to £150,000 and revolving credit facilities from £50,001 to £5m to UK SMEs. CCR
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www.CCRMagazine.com October 2020
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