CBILS Term Loans

Loans from £50,001 – £250,000.

Terms from 2 – 6 years

Nothing to pay for 12 months

Government pay the interest for the first 12 months

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Fast acceptance rate

Application form

Easy application process

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Unrestricted use of funds

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Terms from 2 to 6 years

CBILS-backed Term Loans

One of the least complicated loan types, term loans are now a CBILS loan option, meaning they are backed by the Coronavirus Business Interruption Loan Scheme (CBILS). Providing between £50,001 to £250,000, a CBILS backed term loan is ideal for helping SMEs operate in light of Coronavirus implications. With nothing to pay until the 13th month of the loan term (and the first 12 months’ interest paid for by the UK Government), a term loan is ideal for those in need of quick and substantial support.

You’ll need to be eligible to apply and should expect interest rates based on your business and personal circumstances. Below, we’ll identify exactly what you need to apply and what you can expect in terms of support. If you’d rather speak directly to the team, use the form above and we’ll get in touch.

What is a Term Loan?

Term loans provide SMEs with finance that must be repaid over a certain period of time. They’re one of the least complicated business loans and require minimal consideration for the purpose of the loan. In the past, term loans were segmented into three top-level loan term types: short, medium and long-term. With the introduction of the Coronavirus Business Interruption Loan Scheme, they’re now only available between 2 and 6 years, with interest rates between 1.8% and 11% APR based on business and personal credit. Unfortunately, not every businesses will be eligible for a CBILS-backed term loan so you’ll need to sit within the eligibility requirements below.

Is my business eligible for a CBILS-backed Term Loan?

To qualify for a CBILS-backed term loan, your business must sit within the eligibility requirements set out below:

  • Turnover is below £45M
  • 250 Employees or less
  • Business has been negatively impacted by Covid-19
  • Business generates more than 50% of turnover in the UK
  • Positive Balance Sheet
  • Able to demonstrate affordability
  • No history of crime or fraud
  • Filed at least 1 set of accounts
  • Ltd Companies only
  • Minimum 12 months trading
During your application, you may also be asked to provide further documents. These could include up-to-date management accounts, bank statements from 1st September 2019 onwards, your last 12 months VAT returns, and 3-month forecast figures.
  • Borrow from £2,500 - £2,000,000
  • Interest rates from 4.95% per annum
  • Interest rates from 4.95% per annum
  • No bulky business plans required
  • Eligible for homeowners that are directors of LTD businesses
  • Flexible underwriting process

How to Apply

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Fill in the above form or contact us

Tell us how much you’re looking for and you intentions with the funds. No bulky business plans or documents are required.

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We find an offer

We search the market for the most competitive offers. A dedicated account manager will then provide support thoughout.

Form approval

Approval

You’ll receive a personalised quote within just 24 hours. We currently have an 85% acceptance rate.

Money

Transfer

The money can be in your account within a matter of days.

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Not sure what type of finance is right for you?

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Call us today for some advice.

How much can my business borrow with a Term Loan?

CBILS backed term loans provide SMEs with financial support from £50,001 to £250,000. The amount you will be eligible for sits at a maximum of 25% of your annual turnover. If your business turns over more than £1-million per year, you may be eligible to apply for multiple term loans and receive funding beyond the single-loan limit.

CBILS-Backed Term Loan Details

  • Loans from £50,001 – £250,000
  • Maximum loan value is 25% of turnover
  • Terms from 2 – 6 years
  • Rates from 1.8% – 11% APR
  • First 12 months interest paid for by the UK Government
  • Nothing to pay for first 12 months with capital deferred until Year 2
  • No broker or arrangement fees

What are the benefits of Term Loans?

The biggest advantage of a term loan is the provision of substantial financial support which can be paid for over a long period of time. This allows you to fund big operational purchases without losing out on your day-to-day operational finances. Some of the other benefits of term loans include:

Low Interest Rates:

With longer durations than most other types of business loan, interest rates are generally lower. Under the CBILS-backed scheme, they’re limited at 11% APR but can drop as low as 1.8%. This will be based on your business history and may include personal credit history for certain cases.

Streamlined Application Process:

As term loans are flexible in terms of their purpose, the application process is quick and to the point. Unlike business loans with specific purposes, you don’t need to prove eligibility to the same extent. As identified earlier, you’ll need to apply for finance within the term loans limit and provide some documentation which prove your business is viable for this support.

Structured repayments:

With a structured repayment plan, term loans are great for ensuring you aren’t hit with any unexpected fees or charges. Upon completion of your application, you’ll be shown set repayment dates and amounts, allowing you to budget and keep your business moving forward while you pay off your loan.

For any further information regarding our CBILS backed term loans, call us on 020 3355 7462 or email us at info@auroracapital.co.uk.
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