ThinCats has been approved by the British Business Bank as an accredited lender to provide term loans through the Coronavirus Business Interruption Loan Scheme (CBILS).
We usually fund mid-sized businesses with loans from £1m-£15m, however, government rules limit the maximum loan size for CBILS to £5m.
CBILS are specifically for UK based businesses with a turnover of less than £45m. Businesses must have been viable (i.e. not “in difficulty”) prior to the Covid-19 pandemic and must declare that they have been adversely affected.
The government will cover the cost of the first 12 months interest payments and any fees levied by ThinCats, however, borrowers should note that they remain liable for 100% of the loan.
CBILS Eligibility
Type of business
- Sole trader, a partnership or an individual acting on behalf of a company or a company with a turnover less than £45m
- Based in the UK
- Generating more than 50% of turnover from trading or commercial activity in the UK
Viability
CBILS are designed to provide finance to businesses that were otherwise viable before the Covid-19 pandemic. To be eligible, businesses need to demonstrate that they were not a “business in difficulty” on 31 December 2019.
Full eligibility checklist and definition of a business in difficulty
What can CBILS loans be used for?
Through the support that we are already providing to our existing borrowers, there are a number of situations where we are particularly well placed to provide CBILS funding:
Consumer closure
A business offering a service that will resume once lockdown/social distancing restrictions are lifted
Order shift / supply chain
A business with contracted orders but affected by either postponed delivery schedules or problems sourcing input materials
General fall in demand
A business where demand has fallen as a result of reduced economic activity
Delayed debtor receipts
A business experiencing delayed revenue due to customer cashflow difficulties
Staff closure
A business where staff are not able to work safely under social distancing rules despite ongoing demands for production
Investment /
Aquisitions
Businesses whose underlying model has been impacted and are looking to diversify revenue streams, e.g. investment in online distribution or by acquiring new business
What can’t CBILS loans be used for?
Dividends, Share Buy-backs, New PE backed deals, MBOs and MBIs
ThinCats lending criteria
In addition to meeting the British Business Bank’s eligibility rules for CBILS, businesses looking for funding from ThinCats need to satisfy our own lending criteria:
Profit making
Businesses must have produced positive EBITDA for each of the 2 years prior to Covid-19
Loan size £1m-£5m
We cannot provide loans less than £1m or greater than £5m
Cash flow loans
Minimum £0.5m EBITDA required 12 months pre Covid-19. Maximum loan size is 3x EBITDA
Asset backed loans
Maximum loan to value of 75%
Sectors
All sectors considered, but selective appetite for leisure, travel & retail
Loan term
Minimum 1 year up to maximum of 6 years
Start your CBILS application
You will need the following information to complete your application:
- 2 year historic and two-year forecast financials
- Most recent management accounts not more than 2 months old
- Last 3 months bank statements for borrower
Please note the minimum loan size is £1 million
Advisers
If you are an adviser handling a CBILS application on behalf of a business, you can start the online application here. If you need to discuss the funding proposal before starting your application, please contact your regional ThinCats representative
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).
Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website
