5th June 2020, London: Fintech business lender MarketFinance has been given the green light by the British Business Bank to operationally start lending business loans and invoice finance as a lender under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS).
CBILS is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the COVID-19 outbreak. It is intended that these finance facilities will help SMES who are experiencing lost or deferred revenues, leading to disruptions to their cash flow. From today, businesses can immediately apply for a CBILS loan or invoice finance facility through MarketFinance via its website.
Business loans Under the CBILS, the first 12 months of interest on the loan and any arrangement fees will be paid by the UK Government as a Business Interruption Payment. This means smaller businesses will benefit from no upfront costs and lower initial repayments. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security. SMEs can apply for a MarketFinance CBILS term loan (up to 3 years) between £50,001 and £150,000.
Invoice finance Businesses looking for cash flow or working capital can get finance on their outstanding invoices (with long payment terms, where they are waiting to be paid on work completed). As with business loans, there will be no arrangement fees or interest charged. SMEs with an annual turnover of at least £100,000 can apply for a MarketFinance CBILS invoice finance facility between £50,0001 and £5m.
Anil Stocker, CEO at MarketFinance, commented: “CBILS funding is a vital source of finance for businesses looking to kick start their recovery post lock down. We’re delighted to operationally launch our CBILS programme for these businesses. Less than £9b has been advanced to just 46,000 businesses. By our estimation, there is a £20b lending opportunity with CBILS funding. We aim to get more of this finance out to businesses in need across the country.”
“Businesses are looking to trade their way out of this crisis and CBILS allows them to unlock funding they might not have found otherwise. Here at MarketFinance, our technology and risk underwriting platform is at the heart of what we do. We’ve been processing large volumes of applications and delivering rapid funding decisions since we launched in 2011, and we’re going to use this foundation to get as much funding out to businesses in this crucial time.” adds Anil stocker.
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).
Further information and FAQs are available here. The CBILS is one element of a broad package of government financial support for UK business and employees. To learn more about the range of government support click here
Under the Scheme rules, the government will provide lenders with a guarantee of 80% of the outstanding principal on each loan. For loans to qualify, customers must have a borrowing proposal that the lender would consider viable if not for the coronavirus pandemic. Borrowers will remain liable for repayment of 100% of the loan.
CBILS is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS). Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at www.british-business-bank.co.uk/CBILS
MarketFinance is a business finance company with offices in London and Manchester. The online platform enables businesses to access a range of flexible finance solutions — quickly and easily. This smart technology is backed by help from real people so business owners can save time and focus on growing their business.
Since 2011, MarketFinance has advanced over £2.9 billion to companies across a range of sizes and sectors, providing working capital and finance for everything from paying staff and suppliers to launching new products or services and accelerating growth.
MarketFinance is backed by Barclays, Santander InnoVentures, European venture capital fund Northzone (invested in Klarna, iZettle and Trustpilot), private equity group MCI Capital (also invested in iZettle, Azimo and Gett) and Viola Credit. For further information visit: www.marketfinance.com or follow us on LinkedIn and Twitter.
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Source: Company press release.