Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Coronavirus Business Interruption Loan Scheme to cover business acquisitions

Coronavirus Business Interruption Loan Scheme to cover business acquisitions

Tue, 31 Mar 2020 | BUSINESS NEWS



The UK government has launched the Coronavirus Business Interruption Loan Scheme (CBILS) as it looks to help UK SMEs that might suffer during the coronavirus pandemic. However, the scheme also appears to offer an unprecedented opportunity for acquisitive business owners, following confirmation that the loan can be used to acquire other businesses, if the acquisition is deemed to add value to the business.

If your company has been hit with cash flow difficulties or a drop in revenue due to the coronavirus outbreak, then you may be eligible for a loan under CBILS to help you buy a business that could offset this or that could help you with your recovery in the aftermath of the pandemic.

This represents an incredible opportunity at what is otherwise an incredibly difficult time. With business valuations at a historic low due to the coronavirus turmoil, CBILS could enable you to acquire a successful business at a cut-rate price, using a loan provided by the government and on which the government is committed to covering the interest for the first 12 months.

As Business Sale Report’s Boris Rykov says: "In these difficult times, taking out up to £5 million of a government-backed loan could be an invaluable lifeline for some businesses. However, it will also offer an incredible opportunity for others to grow like never before. Savvy business buyers will pounce on this over the next 6 months."

The CBILS, which will run for an initial six months, will look to support UK SMEs that may be affected by loss of revenue or disrupted cash flow during the pandemic. Through the scheme, the government will offer business interruption payments of up to £5 million through over 40 accredited lenders to cover the first 12 months of interest payments and any fees levied by lenders. These payments can come in the form of term loans, overdrafts, invoice finance and asset finance. It has also been confirmed that franchises are eligible.

There is no guarantee fee for access and any loans granted are available on repayment terms of up to six years, with finance terms of up to six years for term loans and asset finance facilities and up to three years for overdrafts and invoice finance facilities. The scheme may also be used for unsecured lending for facilities of up to £250,000.

The scheme is open to UK-based SMEs that meet the following simple criteria:
- Annual turnover of up to £45 million
- Generate 50 per cent of their turnover from trading activity
- The lender must consider that the business would be viable if not for the pandemic
- The lender must be satisfied that the business will trade out of any short- to medium- term difficulty in the aftermath of the pandemic


Share this article



Latest Businesses for Sale

Bespoke Tour Operator & Travel Agency
London, UK

A highly successful tour operator and travel agency trading for over 40 years. Offers bespoke travel and tourism packages for the benefit of private, corporate and commercial clients. Specialises in travel to Latin America and the Middle East. A full...

Asking Price: Offers Invited
Turnover: £7,600,000

LEASEHOLD


Manufacturer & Retailer Of Tents, Awnings & Accessories
UK Wide

Design, manufacture and retail of own brand tents, awnings and accessories. Full range of products from small hiking and touring tents to large family tents.

Asking Price: Offers Invited
Turnover: £2,000,000

RELOCATABLE


Paving & Drainage Contractor
Merseyside, North West, UK

Well established and lucrative Paving and Drainage Contractor. Leasehold/Freehold option available. Convenient and accessible trading position, loyal customer base. Predicted increased turnover £900k (y/e 30.04.20), consistently strong profits, impre...

Asking Price: £675,000
Turnover: £781,539

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Jan
 

Injection moulding business sold out of administration to employees | BUSINESS SALE

Conwy-based injection moulding company A2B Plastics Limited ...

 
18
 
Jan
 

AFH Financial Group ready to return to acquisition trail in 2021 | BUSINESS NEWS

In its yearly report to October 2020, wealth manager and adv...

 
15
 
Jan
 

Buyer sought for portfolio of pubs | BUSINESS SALE

Five pubs that formerly operated under the Authentic Alehous...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
19
 
Jan
 

Injection moulding business sold out of administration to employees | BUSINESS SALE

Conwy-based injection moulding company A2B Plastics Limited ...

 
18
 
Jan
 

AFH Financial Group ready to return to acquisition trail in 2021 | BUSINESS NEWS

In its yearly report to October 2020, wealth manager and adv...

 
15
 
Jan
 

Buyer sought for portfolio of pubs | BUSINESS SALE

Five pubs that formerly operated under the Authentic Alehous...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Daily Financial Alerts
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.