Business Support Finance – COVID-19

Launched in response to the coronavirus outbreak, the Coronavirus Business Interruption Loan Scheme (CBILS) is designed to support UK businesses during this period of disruption. CBILS provides the lender with a Government backed guarantee of 80%, against finance offered under CBILS with the balance of risk being held by the lender.

CBILS is designed to assist with cash flow, initially by way of a Capital Repayment Holiday (Interest only period) of 12 months or a commercial loan over 6 years, with no repayments in the first 12 months followed by a 5-year loan facility on a full repayment basis.

CBILS will only be made available to businesses that were deemed “viable pre Covid 19” and as a consequence a “robust” case must be made for your new Capital Repayment Holiday or loan based on your pre Covid trading information.

It is important to note that if your financial and supporting information isn’t presented correctly to meet the lenders requirements, this could lead to a decline for support, which may impact on your existing loan covenants when considered against your lenders’ “prevailing” debt service criteria which may give your lender cause for concern post Covid 19.

During this period of uncertainty, we at Stewart Hindley & Partners are here to help you and have direct access to all the lenders’ that offer CBILS and who are accredited by the British Business Bank. If for any reason your business is not eligible for CBILS then we can provide other routes to finance to support your business.

Given the record levels of demand that banks are incurring for general advice and CBILS applications, we at Stewart Hindley & Partners are able to offer, on your behalf, support through our own FCA relationships with all CBILS accredited lenders.

As a result, we are able to deal with the relevant Business Relationship Manager directly, to ensure a prompt application, with the best possible outcome given your circumstances and thereby take away the uncertainty by securing a decision in-principle within 24 hours.

If you’d like to discuss how we can assist you with your CBILS application or any other funding requirement during these challenging times, then please don’t hesitate to get in touch with us either via completing the contact form or by calling us directly on 01488 684834.

What is financial restructuring and why it applies to you

Financial restructuring in hospitality businesses sounds like the sort of thing that the Hiltons, Raddissons and Travelodges of this world concern themselves with. However, financial restructuring is something that anyone and everyone who owns a public house, hotel or B&B should know is an option that they could benefit from.

What is financial restructuring?

Financial restructuring within the hospitality industry can refer to any action taken to change the way a business is owned, structured or run, to eliminate financial risk or improve a financial situation.

There are no minimal financial limits to qualify activity as financial restructuring, nor any requisite business size. So, if you are a B&B, a boutique hotel, a public house or even a global chain of hotels, you could be involved in a financial restructure.

So how can financial restructuring help my hospitality business?

Financial restructuring can help to provide cash flow  to cover VAT arrears, a liquidity shortfall or a credit rating downgrade.

Whilst financial restructuring is often used, when under duress, to escape a sticky situation, not all financial restructuring is compulsory. It can also be used to reinvest in a business.

A financial restructure doesn’t have to be limited to providing funds for your existing business: it could be a good way to expand your business empire by buying a new business or new premises.

What sort of activities constitute a financial restructure?

Financial restructuring of your hospitality business could include re-mortgaging to consolidate debt, downsizing your workforce, or even restructuring the ownership or management of a business.

Stewart Hindley & Partners is an independent, whole-of-market finance broker which means we can find the most cost-effective way to re-finance or release capital for your business. Our specialists in business funding and business recovery can help you find the right products and ensure your application for finance is successful.

As many loan providers require business plans, marketing plans, and cash-flow projections, we can work alongside the accountancy arm of our business to help guide you through compiling the information you have, or the materials you need to present, to give you the very best chance of success at securing your hospitality finance.

For advice on financial restructuring for your hospitality business, speak to one of knowledgeable advisors today on 01488 393049.