You must have a viable business (excepting current crisis uncertainties)
Covid-19 has and/or will cause you issues with trading i.e. loss of turnover – but you must be able to demonstrate that you had a viable business prior to the disruption caused by the Coronavirus
Finance facilities of up to £5m (total) for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow
Business turnover from £500,000 up to £30m selling on a Business to Business basis (B2B, not selling to consumers)
Profitable at last year end accounts
HMRC paid up to date at end of last quarter (current quarter arrears accepted)
You must have a well spread debtors ledger
The CBIL loan element will be linked to an Invoice Finance facility (not stand alone).
The CBIL loan will be based on your forecast cash requirement for critical payments over the next 6-12 months. You will therefore need to provide a cash expenditure forecast detailing expenditure for this period (for smaller business an outline of your potential out-goings during same period)
Industry sectors we are unable support - Anything contractual (for example stage payments) or construction in nature or businesses with a high level of export above 25%
The Invoice Finance facility will need to be personally guaranteed, typically at 25% of the facility granted.
The CBIL loan element will not attract a Personal Guarantee
Must be linked to an Invoice Finance facility – If in future if you are looking to move IF away from the lender the CBIL must be repaid at the same time
If there is an incumbent Invoice Finance provider to the business, you must move your Invoice Finance facilities (Importantly you do not need to move/change your business bank accounts
6-month capital repayment holiday on the CBIL loan element
First 12-months interest free on the CBIL loan element. Thereafter interest rates will be competitive market driven rates.
No lender arrangement fee for the CBIL Loan. Brokerage packaging fees will apply, these will be 0.5% of the CBIL loan amount only, subject to a maximum of £5,000. QED Finance will manage the whole application process
Charges for Invoice Finance component are market competitive
The borrower will always remain 100% liable for the debt. The lender will pay the government for the CBIL insurance provided (to provide 80% insurance in case of company failing to repay loan).
The maximum loan term is 6 years.
Brief description of nature of business, work undertaken, type of customers and effect of Coronavirus on the business
2 years published accounts to include full profit and loss
Up to date management accounts to include profit and loss and balance sheet
Aged debtors analysis (full detail of 3 largest debtors)
Aged creditors analysis
Detail of stock levels held (please break down by type)
Breakdown of current borrowings (include lender, facility and amounts outstanding)
Detail of Invoice Finance charges, service charges and interest rates paid.
Detail of critical cash expenditure next 6-12 months (to enable CBIL loan amount requirement calculation). Please denote as a minimum, wages, HMRC and business rates (areas subject to further government support).
The Initial Requirements will be packaged into a from acceptable to the lender.
The lender will confirm an initial acceptance of the proposal and an outline offer in principle
If this outline offer is acceptable to the client a non-refundable application fee of £495 plus vat is payable to QED Finance.
A detailed list of information will be requested to include (but not limited to)
Director CVs and proof of ID and address
Directors personal assets and liabilities statements
12 months day books from accounts package for invoices, credit notes, cash receipts (in CSV format) OR last 12 months end of month statements from current Invoice Finance provider.
5 copies of typical paper trail (order and corresponding invoice and customer sign-off)
5 copies of typical remittance advices (if available)
Confirmation of HMRC position from HMRC Gateway system showing PAYE and VAT situation.
Copies of 5 largest credit notes (by value) raised in last year.
Standard terms and conditions of sale and any contracts that you are bound by.
The above requirements for Step 2 are the standard requirements from an Invoice Finance lender at audit stage.
No onsite audit will be carried out; thus, the production of accurate information is an absolute necessity.
Only clients that have appropriate accounting systems in place can be considered for such a facility.
Once the above information is considered in detail the lender will provide a confirmed full offer of facilities. As long as the offer has not altered materially from the outline offer. Then the packaging fee becomes payable to QED Finance.
If the offer of facilities is accepted the signing and pay-out process will be handled remotely. From initial application to pay-out is unlikely to be less than 2 weeks.