Refinancing CBILS Loans

The CBILS scheme launched in 2020 and stopped taking new applications in March 2021, reflecting its position as a supporting loan meant to protect SMEs during the pandemic. However, though the scheme has stopped taking applications, the impact of these loans continues to be felt throughout the business world. 

Over £27bn was drawn as part of the scheme, with just £15.9bn fully repaid by borrowers as of 2023. In terms of CBILS loans paid to SMEs, just 26.8% have been fully repaid. If you’re still making CBIL repayments, you may be able to make your business more efficient by refinancing the loan. 

Refinancing involves another lender taking over your existing debt, but presents opportunities to change the rates and terms. In most scenarios, you can refinance a short-term loan into a longer-term one, which will reduce the monthly repayments and help you manage cash flow. 

If you’ve got a CBILS loan and want to see how you can save money or raise new credit to fund future business efforts, contact Rangewell today. We’ll discuss your requirements and find the right loan for you, then arrange it on your behalf at no cost to you. 

Why move from a CBILS loan?

CBILS loans had their usage at the time but have since become a burden for many businesses. There are multiple reasons you may want to explore alternatives, including the following:

• Avoiding default: If you’re in danger of defaulting on your CBILS loan, you may be able to switch to a more affordable loan agreement by talking to Rangewell. We can help you identify a lender willing to extend your loan term and reduce monthly repayments.
• Further borrowing: Want to grow your business, but you’re already hamstrung by the CBILS loan? Why let that limit you when you can refinance to a new arrangement and unlock further levels of borrowing to help fuel growth? 
• Reducing monthly repayments: Many CBILS loans are expensive due to a relatively short repayment period and a high rate of interest. This can put significant strain on your finances and ability to make business decisions. 
• Receiving fairer interest rates: As we’ve just covered, refinancing a CBILS loan can help you reduce your monthly payments – often by decreasing interest rates or spreading repayments out. However, you may also just want fairer treatment by a lender – CBILS loans were given with a specific interest rate that is no longer reflective of the base rate. If you’d like to be able to benefit from rate fluctuations, you’ll need to refinance to a different type of loan. 

What to consider when refinancing

CBILS loans were misunderstood by many borrowers, with some assuming the loan was from the government rather than from a bank. As terms near their end, refinancing may be the best way for your business to manage debt and avoid the consequences of defaulting with the bank.

When refinancing, you’ll need to consider how you can best position your business to leverage new lender support. That means polishing up your business plan and making sure your revenue forecasts are accurate, as you’ll receive a better offer if your business appears to be in a strong position. 

Of course, as with most forms of agreement, having someone experienced on your side of the table can be invaluable. Talk to our team today and see how we can help you, acting as your financing expert to help your business move from CBILS to a more suitable loan. 

Refinance your CBILS loan now

There’s very little benefit in remaining tied to your original CBILS loan. Explore your options and see how you can decrease monthly repayments or raise further credit with a refinancing agreement. Whatever your goals, we can help you move away from CBILS and choose a more suitable loan. Speak to our team today to learn how.