Credit, Collections & Insolvency News
The Finance & Leasing Association (FLA) has secured access for independent and non-bank lenders to the Coronavirus Business Interruption Loan Scheme (CBILS), allowing them to continue to run their business, support existing customers’ requests for forbearance, and to continue lending to new customers.
Gaining access to CBILS funding means that many more firms can be helped to bridge the immediate challenges presented by the Coronavirus shutdown, and emerge ready to do business.
Simon Goldie, Head of Asset Finance at the FLA said “We have been very clear in discussions with Government that the right mix of funding will penetrate further into the economy, delivering more support for a broader selection of businesses and individuals, so it is good to see that the British Business Bank agrees with us.”
“We have also argued that the accreditation process needs to be as quick as possible, so if a funder is regulated by the PRA or FCA, this should be taken into account. We have been assured by the BBB that they are doing everything they can to speed up the accreditation process.”
However, it remains a concern that both the Term Funding for SMEs (TFSME)and the Covid-19 Corporate Financing Facility (CCFF) are currently inaccessible to FLA independent and non-bank funders; the TFSME does not cover non-bank lenders, and the CCFF facility is only open to non-finance businesses. FLA funders play a critical role in providing finance to businesses and households in the UK, and we would urge the Government to harness this capacity within their schemes.