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The Coronavirus Business Interruption Loan Scheme (CBILS) – Banking requirements

Financial projections and cash flow requirements

With the deluge of proposed legislation that has been released as part of the Coronavirus reaction it has taken time for the UK business infrastructure to catch up. More details are now emerging regarding the detailed criteria which accredited funders are using when evaluating applications for the Coronavirus Business Interruption Loan Scheme (CBILS).

Our focus here is how to address the management information and forecasting requirements which seem to be fundamental to an application.

The British Business Bank is running the scheme (through the 40 accredited lenders) and has been clear in its message. The funding is aimed at those businesses which were viable prior to the impact of Covid-19 and a certain degree of commercialism will be applied as part of the process.

Principally the viability of the business will be evaluated primarily through a review of two key areas:

Firstly, a review of recent financial performance of the business, specifically with reference to recent financial statements, and management accounts (prior to Coronavirus).

A review of the projected financial performance of the business for the financial year 2020 and 2021. It is expected that funders will require 2 scenarios:

i) The projected performance on a “normal” basis, excluding the impact of the Coronavirus;

ii) The expected performance based on the impact of Coronavirus.

Therefore it is very important that businesses looking to secure funding ensure that their management information is accurate and up to date.

Secondly business will need to prepare detailed financial projections showing the projected profit and loss, balance sheet and cash flow position on a monthly basis.

The team at NR Barton are well versed in the requirements of the respective banks and our specialist teams are here to assist you with the application preparation.

If you would like to discuss further, please contact your contact partner of manager to progress. Our contact details can be found here: https://www.nrbarton.co.uk/our-team/

We’re here to help

With all the legislative changes and updates over recent days in these ever changing and uncertain times, our teams are briefed and here to help you and your business.

Whilst our physical offices are closed following the ‘lock down’ advice, the team at NR Barton are working remotely from home. If you have any questions you should not hesitate to contact your engagement partner or manager who will be happy to assist; our contact details can be found here.

For anyone unsure of who to contact, we are still answering phones (01942 242245) and we are answering emails to accounts@nrbarton.co.uk.

We’re here to help.

All the best

The NR Barton team

Want to read more of this?

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Alternatively read all our articles in our Covid-19 hub here: https://www.nrbarton.co.uk/news/blog/category/covid19/