Listen: CBILS and Bounce Back loans – everything you need to know

What’s the difference between the government’s Coronavirus Business Interruption Loans Scheme (CBILS), and the new Bounce Back Loans, which launched on Monday May 4th?

More importantly, how can you improve your chances applying for either successfully without borrowing beyond your means?

To answer those questions, our Co-Founder and CEO Katrin Herrling joined Ben Johnson, Strategic Partnerships Manager at Xero, and Ollie Maitland, Co-Founder and Chief Product Officer at Capitalise.

Other topics covered include:

  • CBILS lenders: where to get your loan approved [see our full guide here]
  • Understanding the risk of taking on debt
  • Planning your loan repayments before applying
  • Switching from CBILS to BBLS

To listen to the full discussion via the Xero website, please click here, or check out the key insights, below.


Five expert tips to safeguard your business


1. Don’t just focus on tomorrow: Focus on what you want your business to look like in 6-12 months

“This crisis is unpredictable, but take control of what you want your business to be when you come out of this crisis:

  • What do you want to be recognised for by your customers?
  • What do you want to be recognised for by your team in terms of how you treated them?
  • How do you want to partner with those who can help you successfully navigate past of this crisis?

“Don’t just focus on the short term. Think about where you want to get to and how finance can help you.

“Don’t go with debt if you don’t have a viable plan as to how you come out of it. It is not a cheap instrument. You’re borrowing on the future. Do that if you’re confident that you have a plan for how to use it.” – Katrin


2. Have visibility of your cash flow

“Whether it’s in Excel or you’re using a solution [like Xero], you need to have that level of visibility to see what happens. If your revenue is not £60,000, but £45,000, what does that mean for your cash days? It’s super important.” Ollie


3. Run things in parallel

“Keep track of where your applications are. There is a time delay, so running things in parallel will help you get the most choice. Take the cheapest one first, and think about short-term vs. long-term funding. CBILS and BBLS are six year products: that’s a long time in anyone’s world, particularly in a small business landscape. So mirror that with short-term facilities such as overdrafts and invoice finance.” – Ollie


4. Debt is not bad. It can help you in the short term and the long term if you’re smart about it

“There are options out there, even if a bank says no. Many of the digital lenders are very quick to make decisions – some in less than 24 hours. But they’re only willing to look at applications that are fully completed, and where all of the detail that needs to be provided is already included.

“This is where Xero comes in and can help you. To get to the front of the queue, use the capabilities of Xero and Open Banking, and other pieces that you can easily access, to provide as much information as you can to make your business look as good as possible. But also be realistic about what your future plans are.” – Katrin


5. Speak to your accountant. They can help you access different products

“Ask your accountant to help you access Capitalise. They can do grant funding. They can help you with applications on funding, [and] with the furlough process. There are even products to help you get funding against furlough claim schemes now, as well in the market. These are all things you can get a hand with, so definitely ask for help.” Ollie