Relaxation of Information Requirements

The UK’s seven largest small business lenders have relaxed their requirements for applications under the existing Coronavirus Business Interruption Loan Scheme.

With the intent to speed up the provision of finance to small and medium-sized businesses under CBILS, seven SME lenders (Barclays Bank UK, Danske Bank, HSBC, Lloyds Bank, NatWest, Santander and Virgin Money) have stated that rather than requiring businesses to provide forecasts and business plans to support CBILS applications, lenders will now rely upon their own information.

A joint statement from the lenders and UK Finance proclaimed: “… lenders will only ask businesses for information and data they might reasonably be able to provide at speed and we will not require the provision of forward-looking financial information or business plans from businesses applying for CBILS-backed lending, relying instead on our own information to assess credit and business viability.”

Barrons Comment

We wholeheartedly support any effort to make the CBILS application process easier for business owners, so long as the ease with which applications can be made is supported by positive outcomes from the review process. Time will tell – Government has clearly exerted pressure, when the full details emerge of the process Bank’s will follow we may be able to take comfort…

We have our concerns however that the preparation and formulation of forecasts and plans is not simply cast aside by business owners. We think it is an invaluable planning tool…

So, just take a moment to consider what forecasting delivers as an outcome, it might just help you save your business.