Address the debt burdens in your business from lending & support schemes and re-model your business

9 July 2020

The latest figures released by the government on the Coronavirus support schemes show an interesting picture. The total facilities agreed for UK businesses across the three main lending schemes now totals £42.91bn. Approved facilities to SMEs under the CBILS and BBL schemes totaled £40.58bn, spread across over 1 million businesses.

To put this in context, total bank lending to SMEs in the whole of 2019 was only £57 bn. The support scheme loans have no interest or capital repayments for the first twelve months, and so businesses won’t have to start paying them until the summer of 2021.

However, given that many SMEs will have also deferred VAT and other taxes into 2021, there will be considerable pressure upon these owners to remodel their businesses quickly to deal with the additional debt burdens.

With the Bounce Back loan scheme having the highest approval rate of 82%, versus the remaining schemes spanning 47-50%, it’s evident that many have missed out on vital funding, to stabilise their businesses and move onwards and upwards. Now is definitely the time for owners to look very closely at their business model, and complete a brand new post-Covid SWOT. We’ve summarised the government figures below;


Coronavirus Business Interruption Loan Scheme (CBILS)

Data up to close of businessValue of Facilities ApprovedNumber of Facilities ApprovedTotal Number of Applications
10 May£6.09bn35,91964,531
17 May£7.25bn40,56481,124
24 May£8.15bn43,04584,607
31 May£8.92bn45,84389,724
7 June£9.56bn47,65093,305
14 June£10.11bn49,24796,492
21 June£10.53bn50,48298,975
28 June£11.07bn52,275104,569

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Data up to close of businessValue of Facilities ApprovedNumber of Facilities ApprovedTotal Number of Applications
10 May£0.36bn59450
17 May£0.59bn86496
24 May£0.82bn154502
31 May£1.11bn191579
7 June£1.57bn244615
14 June£1.77bn279661
21 June£2.10bn315709
28 June£2.33bn359745


Bounce Back Loan Scheme (BBLS)

Data up to close of businessValue of Facilities ApprovedNumber of Facilities ApprovedTotal Number of Applications
10 May£8.38bn268,173363,646
17 May£14.18bn464,393581,516
24 May£18.49bn608,069769,137
31 May£21.29bn699,354873,192
7 June£23.78bn782,246964,414
14 June£26.34bn863,5841,057,130
21 June£28.09bn921,2291,123,683
28 June£29.51bn967,3211,186,006


Future Fund

Data up to close of businessTotal number of applicationsNumber of convertible loans approvedValue of convertible loans approved
27 May419n/an/a
31 May464n/an/a
7 June53353£55.9m
14 June577155£146.0m
21 June623252£236.2m
28 June674322£320.6m

 

The most flexible and adaptable businesses will undoubtedly thrive in the new world, and it is important to make sure you are one of them. For help and support in planning your post Covid future, don’t hesitate to get in touch with Fortus Business advisors on 01604 746760.

More