In 2020, we were faced with unprecedented circumstances when COVID-19 first appeared on our shores. However, now with nearly a year of the pandemic under the national belt, we have had time to react and assemble preparation. As a result, 2021 offers hope for SME financing. With the very popular and successful CBILS scheme due to end in March, we hear from some of our lenders about how they plan to help SMEs recover after March 31st.

CBILS:

The government support schemes such as CBILS (Coronavirus Business Interruption Loan Scheme), BBLS (Bounce Back Loan Scheme) and Furlough were set to end last year. They have however, now been extended until March 31st 2021.  With the first year of charges free and no personal guarantee necessary, this is a unique opportunity to borrow. CBILS has funded over 70,000 businesses across the UK. Now is the time to apply and utilise the government backed scheme. Get in contact with Funding Bay to begin your application.

Lending Market:

Once CBILS and other government-funded schemes end, new products for SMEs will be released. Various lenders have released statements, declaring their pledge to help SMEs, despite not being backed by the government.

1. Nucleus : “We are always working to improve our products and services to ensure that our customers get the very best financial solutions available to them. Therefore, we will be releasing new products in the very near future which will consider the challenges that arise due to situations like the pandemic and Brexit. Our aim is to always provide the most innovative and flexible funding to the UK SME marketplace to enable them to thrive.” Get in contact with Nucleus here.  
   
   
2. Fleximize:  “As we demonstrated at the start of the pandemic, we’re always innovating and seeking feedback from our customers so that we can implement any necessary changes to our products and processes. As such, we’ll be ready to adapt post-CBILS in order to meet our customers’ changing needs” Get in contact with Fleximize here.  
   
   
3. Ultimate Finance: CEO of Ultimate Finance, Josh Levy has said “Access to capital will be a key ingredient for success, particularly in an uncertain trading environment, thus making our cashflow solutions such as Invoice Finance an essential tool to supporting recovery once lockdown trading restrictions and uncertainty are lifted. We have a market-leading Asset Finance offering and recently revamped our Bridging Finance products to support property developers and investors post-CBILS by introducing new residential variants designed around specific requirements.  In summary, what businesses and introducers can expect from Ultimate Finance post-CBILS is the same commitment to keeping business moving through our tailored funding and excellent service.” Get in contact with Ultimate Finance here. 
   
   
4. Credit 4: “We expect a big uplift in the demand for alternative business funding next year and are ready to help business owners fuel their growth plans. We will continue to help businesses in the post-COVID & CBILS world in the same way that we do now; with products which are transparently priced and with a human-led underwriting style, appraising each new client on a case-by-case basis.” Get in contact with Credit 4 here. 
   
   
5. Growth Lending:  Growth Lending is adapting their focus towards their Revolving Credit Facility. The RCF is effectively an invoice/stock finance facility merged into one. The emphasis on this product is to help UK SMEs boost their working capital and encourage growth over the coming years. Julian Hornby of Growth Lending said, “no one knows exactly what the 2021 market will look like but Growth Lending will be here to help.” Get in contact with Growth Lending here 

New Opportunities

Whether your business has thrived throughout the past year, or you’re looking into ways to recover, Funding Bay can help guide you through 2021. With so much uncertainty, having plans, predictions and expectations for 2021 is essential. Contact Funding Bay and our team of experts will find you the lender most suited to your business.