Loans of up to £250,000 with 12-months capital and interest free are now available via Compass Business Finance, as part of the government’s CBIL scheme. The loan terms are between 2-5 years, with no upfront or early settlement fees, they are delivered via a faster and simplified application process, enabling loan decisions to typically be made within 24 hours.
To be eligible for one of these loans, businesses will need to meet the following criteria:
- UK-based business that’s been adversely affected by coronavirus
- Turnover of up to £45m
- 3 years of trading history
- Over 50% of turnover from trading activity
- Loan is for business purposes
- Loan primarily for trading in the UK
Compass Business Finance are inviting applications with immediate effect and have committed to doing all they can to help businesses access the funding they need. If a business has already applied for, or received CBILS finance from another source, they can also apply for further support through additional loans or refinancing from Compass.
Jamie Nelson, director of Compass Business Finance, commented that, “New opportunities for business support are becoming available all the time, being able to offer loans that include the first 12-months capital and interest free is a major step forward. The changes in the application process are also a significant improvement, as this has been the cause of much pain to businesses to this point.”
It is important to be aware that a company is unable to receive funding via both the Bounce Back and Business Interruption (CBILS) loan schemes.
CBILS is just one of a number of measures announced by Government and you can find full details of the measures to support businesses through this period of disruption caused by COVID-19 here.