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About the Scheme
The CBILS (Coronavirus Business Interruption Scheme) has been developed by the Government in order to help smaller UK businesses, including taxi firms, which have suffered due to the pandemic. The scheme offers financial support to companies for lost revenue.
CBILS is operated by the British Business Bank, which has over 100 accredited lenders, these include:
- Smaller specialist local lenders
- High-street banks
- Challenger banks
- Asset-based lenders
There are brokers available whom can help organisations that are looking to apply for CBILS to find lenders that are most suited to their company.
Each lender can offer up to £5million in the form of:
- Term loans
- Overdrafts
- Asset finance
- Invoice finance
Who Qualifies for CBILS
There is a list of criteria which businesses must meet in order to qualify.
- Be UK-based in its business activity
- Have an annual turnover of no more than £45million
- Have a viable borrowing proposal for the lender to consider, were it not for the current pandemic
- Acknowledge that your business has been adversely impacted by the COVID-19 (coronavirus)
- Not classed as a “business in difficulty”, if applying to borrow over £30,000.
How Can CBILS Help Taxi Firms
If your taxi business has suffered as a direct impact of the global pandemic, you are likely to be considered for one of the below options. Also, it’s important to take advantage of them whist the scheme is available. You could use the money to improve your service, perhaps by allowing customers to book taxi online.
Right now, the deadline in which to apply is 31st March 2021, having been further extended.
Help to Taxi Fleets Might Include:
- No interest repayments for the first 12 months (capital only)
- No Guarantees required up to £250,000
- Release cashflow from assets free of finance
- Asset finance & refinance
- Lending available between £50,000 – £5million*
- New taxi purchases
- Agreements considered HP, Finance Lease
- Available to business with an annual turnover of up to £45million
- Available for a limited period.
Businesses who previously took out a CBILS but are still struggling, can now also apply for an additional loan to supply the additional capital they need, subject to matching criteria.
It is crucial to get your application in as quickly as possible in order to see if your business is eligible. You only have up to the end of March 2021 to get your Coronavirus Business Interruption Loan Scheme applications in.