- KredX Editorial Team
- 30 Nov 20
- business

The Covid-19 pandemic has shaken the world economy to its core, with business sectors of most countries bearing the brunt of this turmoil. It is a known fact that when compared to large companies, SMEs tend to find it more challenging to cope with a financial crisis, arising in the form of capital shortage.
To survive the phase of lockdowns and general economic slowdown, CBILS were introduced to extend loans to small and medium business enterprises. You must note that such support is available to companies which are otherwise capable of lending products but may fail to avail the security required for approval.
However, this initiative ended at midnight of 30 September 2020, leaving many SMEs with no access to any contingency sources of business funding.
In case you are not aware of CBILS, read on to find more!
What Is CBILS?
Coronavirus Business Interruption Loan Scheme or CBILS is a government scheme launched to help SMEs in the UK, whose cash flow was hampered during the Covid-19 outbreak. Typically, businesses with viable operation plans were eligible to avail of this scheme. Enterprises are entitled to avail CBILS in the form of –- Overdrafts – Businesses can avail this facility for 3 years
- Invoice finance – Enterprises can utilise it for 3 years
- Business loans – They can be obtained for a term of 6 years
- Asset finance – Extended for a tenure of 6 years
Uses Of CBILS
SMEs can use CBILS in the ways mentioned below –- To manage cash flow
- Keep a steady working capital inflow
- Purchasing or leasing property
- Developing a project
- Expansion of business
- For start-up ventures
- Research and development