The right approach must be taken by applicants, to ensure that banks are able to smoothly work through the high volume of demand.
Due to the speed with which the Coronavirus Business Interruption Loan Scheme (CBILS) was set up, many banks lack the capacity to deal with the current level of demand, according to Martyn Shakespear, national head of banking and finance at Baldwins Accountancy, part of the Cogital Group.
Commenting on the difficulty some businesses have found in getting approval for applications for financial relief, he said: “The scheme was set up quickly and many banks haven’t got the capacity in place to meet demand, although this appears to be improving.”
However, the scheme will be integral for many businesses to weather the storm of the COVID-19 crisis.
Shakespear said: “It is vital that viable businesses have the cash flows to hand to pay rent, suppliers and staff, among other costs, so the timely receipt of funds is key and that means getting through the CBILS application process as seamlessly as possible.”
Therefore, the right approach must be taken by applicants, to ensure that banks are able to smoothly work through the high volume of demand.
Shakespear said: “Many of the issues surrounding CBILS approvals can be put down to practical issues that can be overcome, with the right understanding and approach.
“If applications are easy to approve, it makes all the difference.
“That means providing the right numbers and presenting them in a meaningful way that puts the business and loan risk in context, against the financial support the business really needs to see through the crisis and beyond.
“If a company has the understanding and expertise in-house to do that then it is well placed.
“If it doesn’t then it is worth considering seeking advice from its professional adviser.”
