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BBL & CBILS scheme extended!

You may of heard that the Government Bounce Back Loans (BBL) and Coronavirus Business Interruption Loan Scheme (CBILS) have been extended with application now closing on 31st January 2020. With that in mind we thought we would provide an update on what’s changed since they were first introduced.

Bounce Back Loans (BBL)

The BBL were designed to be quick and easy applications allowing businesses to apply for funding for up to a maximum of 25% of their actual or predicted turnover for 2019 or £50k (which ever is the lowest). With a lower interest rate of 2.5% over the 6 year term and no repayments for the first 12 months the scheme was a life line to a number of businesses.


You must be

  • Based in the UK
  • Established before 1st March 2020
  • adversely impacted by coronavirus

Whats changed?

The length of the BBL was initially set at 6 years but you can repay early without any fees, before your first repayment is due the lender that you applied with will contact you about further options

  • Extend the term of the loan to 10 years
  • Move to interest only repayments for a period of 6 months
  • pause your repayments for a period of 6 months (subject to 6 months payments already being made)

Top ups – If you took out a BBL but borrowed less than you were entitled to, you can now top up your existing loan to your maximum amount. This request must be done with the lender that you already hold the BBL with and reflect your turnover stated in the original application – it will not extend the term of the BBL and repayments will start from 12 months from the initial loan being taken out.

How to Apply?

You should approach the lender that you have an existing relationship with for your business transactions. A number of lenders have stopped accepting applications from new customers. For top ups this is subject to minimum increase of £1,000 with a lot of lenders and you must ensure the details match to your initial application. If you do not have an existing relationship with one of the accredited lenders then it is proving extremely difficult to access the scheme.

Coronavirus Business Interruption Loan Scheme (CBILS)

CBILs was the first government lending scheme to go live following Covid-19 and as a result had a few teething problems in its early days. With the increase in lenders now offering CBILs it has made the scheme more accessible. CBILs can be used for Invoice Financing, Asset Finance and Term Business Loans.

What’s changed!

Its probably easier to say what hasn’t changed – the scheme has evolved significantly over the past 6 months making in more accessible. The key criteria is still 25% of turnover or your liquidity needs going forward. But what is clear it that those that were declined early on in the scheme now have options available again to them. The level of information needed has also reduced so bank statements and accountants in normally sufficient if looking at 25% of turnover.

How to apply?

J&J Commercial Finance work with a number of the accredited lenders for this scheme and can process applications on your behalf. As we know the lenders and the types of businesses and transactions they like we are able to place your application with the best lender for your circumstances. We will also work with your accountant to collate all the necessary pieces of information.

Businesses that have used the BBL scheme and require further funding can convert their BBL into the CBILs scheme – as long as the BBL is repaid as part of the application in affect refinancing the BBL whilst drawing additional funds.


Looking to apply or need more information then contact us on 01709 805 624 or email info@JJCommercialFinance.co.uk

The CBILs and BBL are schemes administered by the British Business Bank – further details about the scheme and the accredited lenders can be found on their website.

Are you missing out on the benefits of CBILS?

Are you missing out on the benefits of CBILS?

The Coronavirus Business interruption scheme.

You will have come across it, you may have applied for it before and have been turned down.

Maybe you dismissed it thinking your business didn’t meet the criteria.

Well, a lot has changed since CBILS first came out and with the deadline now extended to the end of January and another lock down to overcome. It’s time to give a second thought to whether this scheme could benefit your business.

Changes to the scheme has meant that smaller businesses effected by the coronavirus crisis can access the funds they need.

How the scheme works

When CBILS loans were first introduced, they were typically offered only by banks.

There are now over 100 lenders currently working to provide this scheme, including:

  • High-street banks
  • Challenger banks
  • Asset-based lenders
  • Smaller specialist local lenders

This enables a more varied form of lending, such as:

  • Term loans
  • Overdrafts
  • Invoice financing
  • Asset financing

As the scheme has grown, so have the options available to businesses.

This scheme gives lenders a government-backed guarantee for the loan should the applicant default on the loan. This means no personal guarantee is needed for amounts below £250,000.

Add on a period of NO repayments, NO early settlement fee and rates that are competitive with the majority being single figure rates*.

It’s easy to see why businesses are banking the loans as a ‘just in case’ safety net.

Applying for the loan

Many businesses may consider a CBILS loan to help with cash flow disruptions. CBILS loans can be used for a variety of other purposes including that safety net of cash to ensure that your business can make progress through the next 12 months.

Here at J&J Commercial Finance, we can help you with the application process and sift through the lenders to find the right one for you.

The application process for applying is simple and waiting on approval is now a lot quicker, with most businesses receiving a decision within the first 24 hours of application. Along with less documentation being required some lenders will only need annual accounts and bank statements!

Contact us or call on 01709 805624 or 07399 660 002

*Rates are dependent on the individual and business circumstances and subject to a full credit searched applications and underwriting by the lender

Post it note saying Buy to Let for website J&J Commercial Finance

Inspiring Property Investor? How can Buy to Let help you?

I was Speaking to a client not so long ago about how she made her way into property investing.

Being a property investor was something of a distant dream, one in which she feared she may never reach. A belief that you must be financially wealthy to start investing in property had held her back for years and it got me thinking.

How many other inspiring property investors are out there, unaware of the different avenues available to them.

I want to cover one of them in this blog.

Many of you will have heard of a Buy to Let mortgage but do you know how what it really means or how they work?


What is a Buy to Let?

Buy to let essentially is purchasing a property for the purposes of letting it out to a tenant. The investor then creates an income from the rent paid by their tenant.

So, you would purchase the property, find a tenant with an agreement of monthly rental payments. This would cover the re-payments on the loan and go on to receive a return on your investment through those rental payments. You can find out more about re-payments by clicking here

Over time if you decide to sell the property when valuation reveals an attractive price, you could maximise your investment through capital growth. This means that the value of your property has increased over that time, allowing you to sell the property for a higher amount than your original purchase.

Of course, though like everything, there are pros and cons that must be considered.


The Pros & Cons of Buy to Let Properties.

Investing in property to rent can be lucrative, offering a lot of potential to those who wish to increase their cash flow over time.

However, as a first-time investor, buy to let can seem daunting and a lot of work. It wouldn’t surprise me if you were wondering whether this option is worth it.

The UK property market is currently, as some would say ‘booming’. With house prices on the rise and rental costs increasing, it offers investor the chance to make some great returns. Plus, the demand for rental homes is growing, with city centres seeing a shortage of properties available to meet that demand.


Before you get ahead of yourself you need to know what to look out for when selecting Buy to Let properties. You need to build a strategy and make sure you know how to identify the best buy to let opportunities and to also understand the risk that come with renting out property.

One of the main considerations would be your rental yield. You would not want to be in a position of purchasing property and investing in refurbishments to then find that the expected rental amount will not give you the kind of income you desired.

You also need to consider the tenant demand. Without demand for your property, you may struggle to secure any tenants and could be left losing income through those empty periods. You also want to consider the type of tenant that will occupy your property as this can come with its additional problems.

All in all, investing in Buy to Let property can be extremely lucrative, gaining a return on investment not just from your income in rent, but also the sale value of your property.

Having assets that generate monthly income is clearly enticing, but you must do your homework and ensure that this is the right avenue for you.

If you want to know more about Buy to Let mortgages you can read that here.


Or contact us either by email or phone.

image of a card payment being taken on contactless card machine for website J&J Commercial Finance

Does your business need a quick cash injection?

Ever heard of merchant cash advance?

Let me start by giving you an overview of what merchant cash advance is, as this type of business finance has only been around the last few years, and give you a quick business loan for your business.

Merchant cash advance uses your card terminal to secure lending, a great option for those businesses with little in the way of assets but with a decent volume of card transactions each month.

You then pay back only as you earn, through an agreed amount of your debit & credit card sales.

It is a quick and easy route to gaining access to a loan, making this way of lending more popular among the retail and leisure sectors.


How could it benefit my business?

If your business uses a card terminal to take customers payments, then you will have a company that process those transactions for you. The lender will work with your terminal provider to gain visibility of your business’s income.

This means, unlike many other forms of lending, there is little need for a detailed look into your accounts, allowing the process of agreeing a loan amount and repayment plan a lot faster.

If you need a quick cash injection for your business or have little in the way of assets, this way of lending is a good option.

To add to that.

Due to the lender taking a % off each card transaction as repayment, it means, if you run a seasonal business, you don’t have the worry of fixed monthly payments during their quieter periods.


So how much could I borrow?

This is a simple one to answer.

The general rule-of-thumb is that you will be able to borrow the equivalent to what your business takes in card payments on an average 4-6-week period.

For example

If your business takes on average around £10,000 a month, you would be looking at a loan of around £8,000 to £15,000.

The repayment is usually around 15-25% of your monthly takings until the loan and the agreed charge for that loan is repaid.


What are the downsides of a merchant cash advance?

As much as this way of lending can be quick, easily obtainable and flexible in repayments, it can be a more expensive option.

Also, if your business receives payments in a variety of different ways, it could mean that this solution could fall short for your needs. If you do not take a sizeable chunk of your income through a card terminal than the amount you can borrow becomes very limited.

However, if your business is in the leisure sector – for example, restaurants, clubs, bars, shops etc and you struggle to get finance or you need cash quick and your cashflow situation is positive, then this type of lending is straightforward and fast!


Want to know more about Merchant Card Advance or looking for advice and guidance on your finance options, call Jamie on 01709 805 624 or 07399 660 002

What is Merchant Card Advance?

Many business will take card payments for their products and if so have you heard of merchant card advance? This is a really flexible way to get extra cash into your business, that has flexible repayments in line with your takings.

What fees are involved?

With Merchant Card Advances the only fee is the factor rate – this is a really simple way of understanding how much the facility will cost you.

For example if you borrow £100k with a factor rate of 1.10 then the total you would pay back is £110k in total.

How much will my repayments be?

Your repayments will vary depending on your business takings. The repayments will be based on your takings and will be a fixed percentage. For example you might have a repayment structure at 15% this means that 15% of your takings are taken automatically to repay the facility. This is great for seasonal businesses as when your takings increase you pay more back and when your trading decreased you pay less back.

graph with two lines showing card takings and the respective repayment for merchant card advances for website J&J Commercial Finance

What information is needed to apply for a merchant card advance?

The following documentation is generally needed as a rule of thumb – some lenders might ask for additional information

  • Last 12 month card takings – statements from merchant provider
    • If trading for between 6 – 12 months then full statements for that period
  • Last 3 months business bank statements

What happens if I’ve just reopened following Covid-19?

As I’m writing this there is no need to worry if you have just reopened all that we would need to see is a couple of weeks of trading activity to confirm that the business has reopened – also don’t worry about the reduced taking during Covid-19 a lot of our lenders understand this and will ignore this period of trading.

How much can I borrow?

Your borrowing limit is based on an average of your monthly card takings (with some lender excluding the lock down period). If you monthly takings are £50k for example then you can generally borrow between 100% – 125% of that amount. The minimum average card taking needs to be £3,500 albeit some lenders have temporary changed their criteria due to lock down.

This product can also work alongside other lending products including government schemes such as CBILs and BBL

How do I apply?

Applying is simple just book an appointment with us and we will guide you through the whole process ensuring the application is right for your business needs.