Following the news the British Business Bank (BBB) has amended the Coronavirus Business Interruption Loan Scheme (CBILS), Gregory Taylor, Partner and Head of Financial Solutions at MHA MacIntyre Hudson, says the change gives lenders scope to look under the hood of young fast-growing SMEs and make lending decisions based on the strength of the company.
Changes to the BBB’s rules for administering CBILS loans make the scheme less arbitrary and could be a game-changer for a certain type of SME. Until this week an SME was classed as an ‘undertaking in difficulty’ if by deducting accumulated losses from its reserves it was left with a negative amount greater than half of its subscribed share capital, as at December 2019. Any SME classified in this way was barred from accessing CBILS, although SMEs less than three years old were exempt from this rule.
1pm plc (LON:OPM), established in 2006 is an independent provider of finance facilities to the SME sector. The 1pm plc group offer a full range of business finance solutions to the UK market from asset finance, hire purchase, commercial loans through to invoice finance and factoring.