ThinCats is 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. 

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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:
 

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Consumer closure

A business offering a service that will resume once lockdown/social distancing restrictions are lifted
 

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Order shift / supply chain

A business with contracted orders but affected by either postponed delivery schedules or problems sourcing input materials
 

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General fall in demand

A business where demand has fallen as a result of reduced economic activity
 

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Delayed debtor receipts

A business experiencing delayed revenue due to customer cashflow difficulties
 

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Staff closure

A business where staff are not able to work safely under social distancing rules despite ongoing demands for production
 

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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

 

Find out more in our CBILS guide


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
 

CBILS Applications

If you are interested in applying for CBILS funding, we recommend you use a corporate finance adviser or accountant.  Advisers handling a CBILS application on behalf of a business, 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 

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