April 3rd, 2020

As we continue to move through these unprecedented times, the health and wellbeing of 2XL’s clients, introducers and team remains as our leading priority. Like many businesses, 2XL has been greatly affected by the current situation but we remain open for business and are keen to support as many clients as possible, utilising our expertise and strong lender relationships to access funding. 

2XL has been closely monitoring Government updates and remain in frequent dialogue with all our panel lenders as the details of the Coronavirus Business Interruption Loan Scheme (‘CBILS’) become clearer. We can now provide the following key update: 

– This is not just a download or relay of information from lenders, but our real-world interpretation of the various guidance received. 

– CBILS is only available if a business does not qualify for funding via traditional lending sources, of which we can determine. This is not a support blanket that is available to all businesses. 

– The scheme has been designed to support businesses in the absence of other funding availability; there must be a specific need or that a business is taking precautionary measures to safeguard its future.

– The CBILS scheme will be available to businesses who can demonstrate a viable business proposition but who have insufficient security to be able to access funding in the ordinary course of business.  

– Those businesses that have access to available security would follow a Business as Usual process with any suitable lender.

– The Government will provide a guarantee to a lender in relation to 80% of the required funding for £25k – £5m. The scheme will run for an initial period of 6 months and will make available financing on a fee-free basis with no interest payable during the first 12 months and no capital repayment requirements for the first 6 months.

– ”Available” security includes personal assets of the Directors in addition to a Debenture and other tangible security; please contact us so we can cover this in more detail. 

– A financially viable customer is one that can demonstrate sustainable profitability and cash generation over time, pre-Coronavirus, to the extent that all its operating payments and financial obligations are sufficiently satisfied. Fundamentally, a business should be able to reasonably demonstrate that it expects to reproduce this historic performance in the future (post Coronavirus).

– Typically, businesses will need to provide a range of information for both CBILS and standard lending which will include (but not exhaustively); Financial Accounts for last 3 years (if a sole trader or partnership – Tax returns and Management Accounts), an overview of the business, a summary for the use of funds and personal income and expenditure for all Directors / Owners. 

– 2XL has a long history of dealing with the Enterprise Finance Guarantee scheme which is very similar in nature to CBILS. 

Please do get in touch for our full support with regards to any lending requirements including eligibility for the various finance packages potentially available. To do this, contact your usual Adviser or email info@2xlcommercial.com with your name, contact number and location and we will call you.