Don’t invest unless you’re prepared to lose all the money you invest. NextFin promotes high - risk investments and you are unlikely to be protected if something goes wrong.
Take 2 minutes to learn more.
Since its launch on 27th March, the Coronavirus Business Interruption Loan Scheme has been amended a number of times to account for a number of businesses that fell through the net.
With the scheme having now been operational for just under two months, NextFin has broken down a variety of statistics to show you how well CBILS has performed as well as the size of the average loan being issued.
* Statistics derived from UK Finance
£5.5bn |
Amount the banking and finance sector has lent to SMEs so far through CBILS |
£1.4bn (33%) |
Amount the total lender under the scheme has grown in the last week |
33,812 (33%) |
Number of loans have now been provided through CBILS, up 52% from 22 April |
1,078 (6 May) |
The number of loans approved each day, increasing from 240 on 2 April. |
£164,000 |
The average value of a CBILS loan |
62,674 |
Number of formal applications lenders have to the scheme from businesses |
These latest figures come in the same week as the launch of the Bounce Bank Loans (BBL) scheme, which has made it simpler and quicker for lenders to provide smaller businesses and sole traders with financial support.
Figurespublished by HM Treasury yesterday revealed that 69,000 Bounce Back Loans worth over £2bn were approved during the first 24 hours of the scheme, highlighting the hard work of bank staff to help viable businesses of all sizes access the finance they need.
CEO of NextFin, Sacha Bright, said: “At £5.5bn with CBILS we are well short of the £330bn that has been made available under the scheme.
“We are aware that the government is not publishing the amounts of higher-level loans. But considering there are 6 million SMEs in the UK and only 33,000 loans approved, there must be hundreds of thousands of businesses not getting the help they need despite the 50% approval rate.
“I suspect is very skewed due to the fact that many businesses would have been told before they applied by accountants, solicitors, business advisors that they do not qualify.
“The government needs to listen to the silent majority. I find it hard to believe that only 64,000 out of 5.96 million businesses need finance to survive. If a million of these businesses go under as a result of failing to receive finance, this will have a huge impact on the economy and employment.
“It's time for the government to embrace reality to save jobs and the British economy and part of this is ensuring it stays in tune with the silent majority when developing policy.”
Author: Sacha Bright & Oliver Murphy
Disclaimer
To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.
Tagged: News Covid-19 Small Business CBILS
Alternative Finance: The Four Types Of Crowdfunding
What is Business Interruption Insurance?
The pros and cons to alternative investment in to private companies via debt or equity
What Is The Term Funding Scheme, And Why Is It So Important To Extend It To P2P Lenders?
Should I Invest in P2P?
Alternative Finance: The Four Types Of Crowdfunding
The pros and cons to alternative investment in to private companies via debt or equity
What is Business Interruption Insurance?
Should I Invest in P2P?
Self-Employed to Benefit From Second Stage of Support Scheme
How To Start A Business Post-Covid-19
Business Banking Resolution Service To Open In November
Over 1.2m Businesses Have Benefited From Coronavirus Lending Schemes
What is The Start Up Loan Scheme?
Figures Show 730,000 Job Losses Since Start of Lockdown
As seen in: