Do you have a business account with a digital bank? Have you struggled to access and apply for the Government backed Bounce Back Loan Scheme or Coronavirus Business Interruption Loan Scheme?
Thousands of UK SMEs are unable to apply for either Government backed scheme as they have a business bank account with a digital bank.
Initially it took time to become accredited, now it seems that sourcing the funding that is needed to help businesses has become the issue, due to the design of the Government Bounce Back Loan Scheme.
One digital bank, for instance, has paused all lending and are campaigning for the Government to provide the funding for Bounce Back Loans.
One CEO wrote to their customers about sourcing funding for the Bounce Back Loans that they were issuing, he explained that though the loans are 100% guaranteed by the Government, they are not funded by the Government.
So, that ‘guarantee’ covers the lender should a business default on the loan, the Government will then reimburse the lender, meaning that the business is still 100% liable for the debt.
In short, the Government does not provide the funding, only the guarantee. The funding will need to be sourced by the respective digital bank and their funding partners, but the scheme may not meet the criteria of their funding partners, leaving a shortfall in available funds for their customers.
What alternative options are available for my business?
This is where The Funding Store could help, we have access to both CBILS accredited funders and alternative funders who have products available that have been tailored recently, with the effects of the current COVID19 pandemic on businesses, kept in mind.
This is great for you, and us, as it gives us both alternative options. The benefit of using The Funding Store is that we understand our panels’ lending criteria, allowing us to put together the strongest case possible for your business to obtain the funding that it needs.
So, if you are genuinely concerned about what alternative options are out there, then you have come to the right place, contact The Funding Store today on 01908 880420, we are here to help.