Funding Circle, a peer-to-peer lending platform, has announced its addition to the British Business Bank’s list of accredited lenders giving businesses another route to access the Coronavirus Business Interruption Loan Scheme (CBILS).

Funding Circle’s application process is an online, automated process with an ‘instant decision lending platform’.  There are large volumes of applications for the scheme taking time to process through other lenders and this alternative lending option could offer a quicker decision turnaround for some businesses.

The minimum loan offered by Funding Circle is now £50,000, increased from £10,000, due to other government schemes providing helpful support for businesses requiring less than £50,000.

The key features of and criteria for CBILS through Funding Circle are listed below:

  • Available to all UK businesses with a turnover less than £45m per annum
  • 3 years trading history
  • Over 50% of turnover from trading activity (i.e. not from investments)
  • No repayments for first 12 months
  • Businesses pay no fees and no interest for the first 12 months
  • All loans will have an APR   < 9.0%
  • Loans between £50k and £250k over 2 to 5 years
  • No Personal Guarantees
  • Loans primarily for trading in the UK
  • Purpose for working capital and for expansion to fund growth
  • 80% government guarantee but borrower is 100% responsible for the loan
  • No forecasts are required – last 2 years accounts and last 6 months bank statements are required documents
  • User friendly documentation process including Docusign

We have helped many clients with applications for financial support with some funding already received. If you require information on financial support available or need help to apply please contact your usual advisor.

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The information in this blog should not be regarded as financial advice. This is based on our understanding in May 2020. Laws and tax rules may change in the future.