imported>Doug Williamson |
imported>Doug Williamson |
Line 1: |
Line 1: |
| ''COVID-19 - business continuity - UK.''
| | A credit break is a break clause in a derivatives contract which provides for the release of one or both of the parties from further obligations under the contract, following a deterioration in the creditworthiness of one of the parties. |
|
| |
|
| (CBILS).
| |
|
| |
|
| The CBILS was provided by the UK government owned British Business Bank through participating providers.
| | == See also == |
| | * [[Break clause]] |
| | * [[Credit]] |
| | * [[Creditworthiness]] |
| | * [[Derivative instrument]] |
| | * [[Mutual break]] |
|
| |
|
| It offered more attractive terms for both businesses applying for new facilities and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
| | [[Category:Manage_risks]] |
| | | [[Category:Risk_frameworks]] |
| The CBILS provided the lender with a UK government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
| | [[Category:Treasury_operations_infrastructure]] |
| | |
| The UK government also paid the first 12 months of interest payments, enabling businesses to benefit from lower initial repayments. The business remained liable for repayments of the capital.
| |
| | |
| The maximum value of a facility provided under the scheme was £5 million.
| |
| | |
| | |
| CBILS supported a wide range of business finance products, including:
| |
| | |
| *Term facilities
| |
| *Overdrafts
| |
| *Invoice finance facilities
| |
| *Asset finance facilities
| |
| | |
| | |
| To be eligible for support via CBILS, the small business must:
| |
| | |
| *Be UK based, with annual turnover of no more than £45 million.
| |
| *Operate within an eligible industrial sector.
| |
| *Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term.
| |
| | |
| | |
| For new borrowings from April 2021 onward, CBILS was superseded by the Recovery Loan Scheme (RLS).
| |
| | |
| | |
| ==See also==
| |
| * [[Bounce Back Loan Scheme]]
| |
| *[[British Business Bank]]
| |
| *[[Business continuity plan]]
| |
| *[[Contingency plan]]
| |
| *[[Coronavirus]]
| |
| *[[Coronavirus Job Retention Scheme]]
| |
| *[[Coronavirus Large Business Interruption Loan Scheme]]
| |
| *[[COVID-19 Corporate Financing Facility]]
| |
| *[[Disaster recovery planning]]
| |
| *[[Financial stability]]
| |
| *[[Liquidity management]]
| |
| * [[Recovery Loan Scheme]] (RLS)
| |
| *[[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:The_business_context]]
| |
| [[Category:Corporate_finance]] | |
| [[Category:Investment]] | |
| [[Category:Long_term_funding]] | |