Coronavirus Business Interuption Loan Rates?
Discussion
I applied today via Natwest. Filled in all the forms and sent all the information required. They called back with good and bad news...
The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
alfabeat said:
I applied today via Natwest. Filled in all the forms and sent all the information required. They called back with good and bad news...
The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
Doesn't really make sense does it? Feels like banks want to attract a load of new commercial business and avoid using the CBIL.....the benefit of which to businesses is the interest for the first 12 months and fee's are covered by the government......The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
Do you have to have your business bank account with the lender you apply to?
Sarnie said:
Doesn't really make sense does it? Feels like banks want to attract a load of new commercial business and avoid using the CBIL.....the benefit of which to businesses is the interest for the first 12 months and fee's are covered by the government......
Do you have to have your business bank account with the lender you apply to?
It doesn't make sense at all. And I'm sure if I went to a bank who didn't know me, they would run a mile, having seen the cashflow forecast I gave to Natwest this morning!Do you have to have your business bank account with the lender you apply to?
I have banked personally with Natwest for the last 30 years, and the business has been with them for 19 years. Never had a loan or an overdraft (in the business), so they must feel fairly comfortable with me.
I did read that you need to apply through your current bank in the first instance. I am going to try a different bank tomorrow, who doesn't know me and see how far I get. I would obviously prefer to get on the CBIL scheme.
alfabeat said:
I applied today via Natwest. Filled in all the forms and sent all the information required. They called back with good and bad news...
The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
Thanks for posting - I guess at least you know that it's there. The bad news, is that I am not eligible for a loan under CBILS scheme. The reason being....that the bank will provide finance under their normal terms (either a £50k overdraft facility or a £50k loan). Rates about 4.6% fixed over 5 years, with a 1.5% facility set up fee. Plus a Personal Guarantee. (Not a charge on assets).
Pretty annoyed at that really! But at least it gives me some security if I need it.
Not sure what to make of it really. Relieved and hacked off at the same time.
Where did you see you have to apply through your current bank first - haven't seen that anywhere?
EDIT: Just checked HSBC and NatWest - both require you to be an existing customer to apply.
Edited by youngsyr on Tuesday 31st March 20:08
alfabeat said:
It doesn't make sense at all. And I'm sure if I went to a bank who didn't know me, they would run a mile, having seen the cashflow forecast I gave to Natwest this morning!
I have banked personally with Natwest for the last 30 years, and the business has been with them for 19 years. Never had a loan or an overdraft (in the business), so they must feel fairly comfortable with me.
I did read that you need to apply through your current bank in the first instance. I am going to try a different bank tomorrow, who doesn't know me and see how far I get. I would obviously prefer to get on the CBIL scheme.
So you'd have to almost tell them that you're not going to have any income for the next year......for them to put you on a CBIL where the interest is free for a year and no payments for 12 months and not agree to lend to you on their own terms??I have banked personally with Natwest for the last 30 years, and the business has been with them for 19 years. Never had a loan or an overdraft (in the business), so they must feel fairly comfortable with me.
I did read that you need to apply through your current bank in the first instance. I am going to try a different bank tomorrow, who doesn't know me and see how far I get. I would obviously prefer to get on the CBIL scheme.
Well we managed to secure our loan this afternoon. Through NatWest. 5 years fixed at 3.97%. First 12 months interest free and no fees.
A hell of a lot of work went in to getting it to be honest but at least it’s there.
If anyone needs any pointers on what they do and don’t ask for then please ask and I’ll see if I can assist. Obviously it will be case dependent and I can only say what we had to provide but it may help.
A hell of a lot of work went in to getting it to be honest but at least it’s there.
If anyone needs any pointers on what they do and don’t ask for then please ask and I’ll see if I can assist. Obviously it will be case dependent and I can only say what we had to provide but it may help.
Coolmover said:
Well we managed to secure our loan this afternoon. Through NatWest. 5 years fixed at 3.97%. First 12 months interest free and no fees.
A hell of a lot of work went in to getting it to be honest but at least it’s there.
If anyone needs any pointers on what they do and don’t ask for then please ask and I’ll see if I can assist. Obviously it will be case dependent and I can only say what we had to provide but it may help.
Thanks - very useful.A hell of a lot of work went in to getting it to be honest but at least it’s there.
If anyone needs any pointers on what they do and don’t ask for then please ask and I’ll see if I can assist. Obviously it will be case dependent and I can only say what we had to provide but it may help.
Do you covenants and reporting terms?
Would also be useful to know the rough amount of your loan - e.g. are we talking low 6 figures or low 7 figures?
Coolmover said:
Lowish 6 figures. No PGs under £250k. But, my God, they make you prove that a) you need it b) that you couldn’t do it yourself and c) that you will be able to pay it back
How can you possibly prove you could pay it back, given that NOBODY has a clue what the world will look like in 3, or even 24 months from now. Surely it must just be a number plucked out of the sky?So no personal liabity whatsoever? Who was that with.
Sorry for all the questions.
monkfish1 said:
Coolmover said:
It’s through NatWest. They don’t ask for PGs below £250k so my house is safe at least!
What about any other personal assets? My understanding is they can still come after you?Gassing Station | Finance | Top of Page | What's New | My Stuff