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As only one in two businesses get a loan from CBILs - what more can be done to help?
Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 28/05/2020

The approval rate for businesses securing a loan under the Coronavirus Business Interruption Loans Scheme (CBILS) has remained at a 50% approval rate for the second week in a row. Data from HM Treasury shows that for the week to 24 May 2020 the approval rate was just below 51%, while Bounce Back loans have increased from 73% 17 May 2020 to 79% 24 May 2020.
While approval rates remain static the number of applications to CBILS also appears to be slowing. There were an additional 16,593 applications from 17 May 2020 to 10 May 2020, but only 3,483 between May 17 2020 and May 24 2020. The launch of Bounce Back loans on 5 May 2020 will account for some of this decline as businesses that need a loan of less than £50,000 switch from CBILS to Bounce Back.
The value of loans under CBILS given to businesses has increased to a total of £8.15 billion by 24 May 2020 compared to £18.49 billion of Bounce Back loans. In total British businesses have now received over £27 billion in loans and guarantees from the Government to support their cashflow during the Coronavirus crises.
The British Business Bank that manages these lending schemes has announced weekly new lenders to CBILS. The latest lenders to join are all regionally focussed, The FSE Group, FW Capital, Mercia Asset Management and Whiterock Finance. These lenders will support smaller businesses based in the north of England, the midlands and Northern Ireland.

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Half of Coronavirus Business Interruption Loans now approved

We have previously reported on the lack of applications being accepted under CBILS and in April this was as low as 20%. The latest results published by UK Finance shows this has improved reaching 56% on 10 May 2020, dropping slightly to 50% on 17 May 2020. While the improvement is positive for those businesses wanting to get a business loan through CBILS, this is still behind the acceptance rate of 80% achieved for business loans prior to the Coronavirus pandemic.
So far there has been £7.25 billion lent under CBILS, to 40,654 businesses. The CBILS larger loan scheme has provided 86 loans totalling £590 million. However, this is half what has been lent in less time under the Bounce Back Loan (BBL) scheme at £14.18 billion. The latter scheme is 100% Government backed and has a simpler application and certification process. The BBL scheme was launched after CBILS and it is likely that many of the smaller CBIL loans were transferred to this scheme.

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Moneyfacts Annual Star Ratings 2020 – Business Current Account and Business Credit Cards announced

Moneyfacts is pleased to announce that our 2020 Star Ratings for Business Current Account and Business Credit Cards have just been released.

The Moneyfacts Star Ratings are respected by both providers and consumers who are looking for the best current accounts and credit cards for businesses in the UK marketplace. Those who value an impartial, expert opinion can now see for themselves which products and providers have achieved the coveted Five or Four-Star Ratings.

As part of our 2020 Moneyfacts Annual Star Ratings, thousands of products across 17 categories, from business and personal finance products to insurance and investment products, are carefully assessed.

Among the many factors we look at to determine star ratings are:

Business current accounts

Flexibility
• Account management
• Card availability
• Services from other banks and branches.

Benefits
• Introductory offers
• Loyalty bonus
• Exclusive offers
• Satisfaction guarantees
• Emergency card
• Preferential deals on other financial products.

Features
• Introductory offers
• Credit interest
• Overdraft availability
• Standing charges
• Cash withdrawal facilities and charges
• Debit transaction charges
• Credit transaction charges
• Statement fees
• Transfers and faster payments
• Facilities and charges
• Cash exchanging facilities and charges.

Business credit cards

Flexibility
• Opening and operating options
• Payment options
• Balance transfer availability
• Contactless
• Number of additional cards.

Charges
• Card fees
• Balance & money transfer fees
• Cash withdrawal fees
• Late payment charges
• Foreign usage charges
• Trace fees
• Minimum interest charges
• Dormancy fees.

Benefits
• Airport lounge access
• Free emergency card
• Free emergency cash
• Interest-free days
• Enhanced purchase protection
• Luggage insurance
• Free text alerts
• Cashback
• Travel accident insurance
• European/worldwide travel insurance
• Flight cancellation/delay insurance
• Medical insurance
• Personal liability insurance

Lee Tillcock, editor of Business Moneyfacts, said: “Vital products for any commercial enterprise, it is pleasing to see continuing innovation and growing choice in the business current account and credit card sectors. Given the impressive range of features offered to meet the needs of modern-day businesses, there are plenty of options to consider when choosing a business current account— something that the sector and regulator are clearly keen to promote. Indeed, the CASS Dashboard figures for the first quarter of 2020 show that business switching volume totals were up 52% compared to the previous quarter. The annual Moneyfacts Business Current Account Star Ratings provide businesses with valuable insight into the quality of the features on offer, before assessing the individual costs.

“It is also encouraging to see providers innovate and increase competition across the business credit card sector. However, as more businesses utilise business credit cards to assist them with keeping in control of expenses and keeping cash flow moving, it is still not easy for business customers to identify which deal will offer the best quality for their specific business needs. The annual Moneyfacts Business Credit Card Star Ratings look at the underlying features of a product, ensuring the business customer finds the most complete product in terms of flexibility and added extras, which will reward them over the longer term.”

To see the full list of awarded products, please click here.

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Can't get a Coronavirus Business Interruption Loan from your bank - these new lenders could help

Ten new lenders have been added to the Coronavirus Business Interruption Loans Scheme (CBILS) bringing hope to those businesses that have been unsuccessful so far in getting finance from the scheme.

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Chancellor extends Furlough Scheme to October and flexibility for part time working

Rishi Sunak has announced today that the Coronavirus Job Retention Scheme, more commonly known as the Furlough Scheme has been extended to the end of October.


The scheme was set to finish in May and currently pays 80% up to £2,500 per month of employees’ wages that are on the scheme. The Chancellor announced that there are currently 7.5 million workers on the scheme, across nearly 1 million businesses.


The furlough scheme will remain in its current form for all industries across the UK until the end of July 2020. From August 2020 until the end of October 2020 the scheme will then allow more flexibility to businesses, including allowing employers to bring back already furloughed employees on a part-time basis.
The Chancellor also confirmed that the 80% level of support will not be changing.

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Recent News

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How small businesses apply for a Coronavirus Bounce-back Loan

4th May 2020

The new Bounce back loan scheme launched today offering loans from £2000 at an interest rate of 2.5%. Find out how to apply and check if your business is eligible.

The new Bounce back loan scheme launched today offering loans from £2000 at an interest rate of 2.5%.

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New Coronavirus Business Interruption Loan Scheme lenders announced

27th April 2020

Four providers have been approved by the British Business Bank as new lenders for accreditation under the Coronavirus Business Interruption Loan Scheme (CBILS)

Four providers have been approved by the British Business Bank as new lenders for accreditation under the Coronavirus Business Interruption Loan Scheme (CBILS)

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Coronavirus Business Loans - Treasury considering 100% guarantee for small business loans

24th April 2020

The Treasury is reported to be considering increasing the Government backing for Coronavirus Business Interruption Loans (CBILS) from 80% to 100% for small loans up to £25,000

The Treasury is reported to be considering increasing the Government backing for Coronavirus Business Interruption Loans (CBILS) from 80% to 100% for small loan

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How to apply for a Future Fund business loan

20th April 2020

Find out how the Future Fund loan works and if your business is eligible to apply.

Find out how the Future Fund loan works and if your business is eligible to apply.

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How to apply for the Coronavirus Small Business Grant Fund

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Small businesses and start-ups in the UK that have been affected by Coronavirus may be able to claim a £10,000 grant from the Government. Find out more about how to apply.

Small businesses and start-ups in the UK that have been affected by Coronavirus may be able to claim a £10,000 grant from the Government. Find out more about ho

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How small businesses apply for a Coronavirus Bounce-back Loan

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The new Bounce back loan scheme launched today offering loans from £2000 at an interest rate of 2.5%. Find out how to apply and check if your business is eligible.

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Can't get a Coronavirus Business Interruption Loan from your bank - these new lenders could help

14th May 2020

Ten new lenders have been added to the Coronavirus Business Interruption Loans Scheme (CBILS) bringing hope to those businesses that have been unsuccessful so far in getting finance from the scheme

Ten new lenders have been added to the Coronavirus Business Interruption Loans Scheme (CBILS) bringing hope to those businesses that have been unsuccessful so f

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As only one in two businesses get a loan from CBILs - what more can be done to help?

28th May 2020

The approval rate for businesses securing a loan under the Coronavirus Business Interruption Loans Scheme (CBILS) has remained at a 50% approval rate for the second week in a row. How can businesses improve their chances of being accepted?

The approval rate for businesses securing a loan under the Coronavirus Business Interruption Loans Scheme (CBILS) has remained at a 50% approval rate for the se

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