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• 20 May

  How To Refinance Government Loans Like CBILS And BBLS

  

  Refinancing Government-backed business loans is becoming increasingly common as the repayment holiday period has ended and the need to make regular repayments has kicked in. Conversely, some SMEs are looking for additional funds in order to meet their working capital needs.

  DISCUSS REFINANCING

  What Is Refinancing?

  Refinancing is where you restructure your finance and funding to better meet your needs. This can be via a new facility or an additional facility. This can yield a number of benefits. Firstly, it can release additional working capital and/or it may be able to reduce your monthly payments to reduce their impact on your cash flow.

  Reducing Monthly Payments

  In some cases, it can be possible to release additional funds whilst also reducing your monthly outgoings. If the objective is to reduce your monthly outgoings, taking a loan over a longer-term, even if you have to pay a higher interest rate, may result in lower monthly payments. This could have cash flow advantages for your business - reducing your monthly outgoings.

  Refinancing CBILS And BBLS

  Whilst Government-backed loan schemes such as CBILS and BBLS helped many UK businesses survive the pandemic, that funding may not be the most appropriate, or the best suited to their needs now. Circumstances may have changed and different types of finance may be more appropriate depending upon the needs of the company.

  Recovery Loan Scheme (RLS)

  Alternatively, your company may just need a top-up loan facility to release additional cash. The Recovery Loan Scheme (RLS) has now closed to new applications, but there are other financing options that are still available. Business loans that are not Government-backed remain available and there are other forms of revolving credit that don't involve gradual repayment of the capital sum.

  How To Refinance Government Loans

  There are lots of options available. The choice of option will depend upon your requirements and your circumstances.

  First Steps

  A good first step is to discuss your situation with an experienced expert that can outline the options for you. The path taken to refinance your company will depend upon your current position and your needs. It may be that a top-up facility is required, an additional facility or an alternative form of funding such as a revolving credit facility. These could be in addition to existing borrowing or as a replacement.

  Please call us on 03330 113622 to discuss your circumstances and explore the options for your business.

  By Glenn Blackman