Coronavirus Large Business Interruption Loan Scheme and Net asset value: Difference between pages

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''COVID-19 - business continuity - UK.''
(NAV).  


(CLBILS).
1.


The CLBILS was designed to provide UK government guarantees of 80% to enable banks to make loans of up to £200m, offered to medium and large sized firms with a turnover of over £45m per annum that were impacted by COVID-19 and were unable to secure regular commercial financing.
A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.


The current balance sheet of the business would normally be the starting point for a net asset valuation.


To be eligible, a business must:
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.


#Be UK-based in its business activity.
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).
#Have an annual turnover over £45 million.
#Be unable to secure regular commercial financing.
#Have a borrowing proposal which the lender:


::(a) would consider viable, were it not for the COVID-19 pandemic; and


::(b) believes will enable the borrower to trade out of any short-term to medium-term difficulty.
2.


Similar valuation methods applied to other entities.


For new borrowings from April 2021 onward, CLBILS is superseded by the Recovery Loan Scheme (RLS).


 
== See also ==
==See also==
* [[Accumulating net asset value]]
* [[Bounce Back Loan Scheme]]
* [[Book value]]
*[[British Business Bank]]
* [[Constant net asset value]]
*[[Business continuity plan]]
* [[Variable net asset value]]
*[[Contingency plan]]
*[[Coronavirus]]
*[[Coronavirus Business Interruption Loan Scheme]]
*[[Coronavirus Job Retention Scheme]]
*[[COVID-19]]
*[[COVID-19 Corporate Financing Facility]]
*[[Disaster recovery planning]]
*[[Financial stability]]
*[[Liquidity management]]
*[[Stranded middle]]
 
 
 
==Resources for COVID-19==
[https://www.treasurers.org/hub/technical/covid19 ACT technical - COVID-19]
 
[https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses UK government: support for businesses]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 17:15, 22 August 2014

(NAV).

1.

A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.

The current balance sheet of the business would normally be the starting point for a net asset valuation.

The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.

Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


2.

Similar valuation methods applied to other entities.


See also

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