Refinancing CBILS Loan To Unlock £150,000 & More Affordable Repayment

For a client who had encountered difficulty during the COVID-19 pandemic, the Coronavirus Business Interruption Loan Scheme (CBILS) provided some much-needed support. However, following post-pandemic recovery, the client recognised a need for a better value loan agreement that was less taxing on their business. 

Why was there a problem?

The client had secured a CBILS loan which provided £450,000 to be repaid over five years. This was a demanding deadline that put a lot of pressure on the business and meant much of their focus had to go towards repaying the loan. 

This also meant that monthly costs were high and severely impacted the client’s ability to invest in the business or even begin to position themselves for growth. With that in mind, the client recognised a need to switch from their CBILS product to something more suitable. 

Why we were able to help

The CBILS scheme was popular and helped many businesses through a challenging time, but challenger banks are now ready to begin supporting those who have taken our CBILS loans by refinancing to longer-term agreements. 

In this client’s case, we took their initial £450,000 loan over five years to various lenders and helped them display their business performance and growth plans. With these, we could negotiate a different loan arrangement that would extend the repayment period and even offer additional funds that could be used to invest in the business. 

Initial offers were to simply extend the £450,000 loan to 15 years rather than five, but with further negotiating by our team we managed to find a lender who offered a £600,000 facility repayable over 10 years – giving the client a full £150,000 cash injection to use in their business and a further five years to repay it compared to the original agreement. As a final bonus, we extended the repayment period even further to 12 years. 

Refinance CBILS with Rangewell

Our client benefitted heavily from our expertise in the lender’s market, as we were able to not only identify lenders who were familiar with CBILS products but also to negotiate a longer-term repayment period and additional cash flow for the client. Crucially, this was offered solely as an option for the client – they could also have chosen to refinance without taking on further debt but extending their repayment term to 15 years to give them more breathing room. 

For businesses that have taken out CBILS products, being able to either extend or increase your borrowing gives you more flexibility and allows you to plan for the future. Work with Rangewell, and we’ll not only guide you through the lender’s market, but we’ll also negotiate with lenders to find the right credit facility to support your needs and further your business.