CBILS applications predicted to rise

The experts have predicted a rise in the number of CBILS applications. The government’s Coronavirus Business Interruption Loan Scheme (CBILS) supports small businesses that have lost capital due to covid-19 outbreak.

The finance lender MarketFinance recently surveyed 5,000 UK companies, employers with a minimum turnover of £250,000. The lender conducted the study in November 2020 (after the announcement of the second lockdown).

The data revealed that 27% of businesses feel they will not survive in 2021 based on the current cash balances. MarketFinance found that many firms are expecting a further reduction in their revenue during the winter months.

A further 34% were uncertain to make it provided the cash flow is improved and they had an exceptional end to the year.

Furthermore, another 27% were certain about survival in 2020. However, older business owners and those based in London and the south-east were the most optimistic.

While small business owners reported a cash injection of, on average, £52,800, would help them see through the winter trading period.

Commenting on the issue, Anil Stocker, CEO of Market Finance, stated:

‘The stop-start government announcements on lockdowns haven’t helped UK businesses.’

‘However, they continue to fight on and will, naturally, require more funds to bolster them through a tricky winter period.’

‘Looking ahead, ultimately, it will be the private sector, which will enable the Chancellor to get the country’s finances back under control, so business leaders will be looking for some pro-growth, pro-enterprise stimulus measures in time to come.’

If you need further advice on CBILS applications, please call us. Our certified accountants will offer you a free initial consultation.

 

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