New Lenders: Coronavirus Business Interruption Loans
The British Business Bank, responsible for the accreditation of lenders, has announced additional 4 lenders under the Coronavirus Business Interruption Loan Scheme.
The new accredited lenders bring the total to 44 lenders (less 1 that has no capital to lend, so 43) and 80% of the UK's smaller businesses have a pre-existing relationship with at least one of these lenders. The new lenders include Starling Bank, Co-operative Bank, Cynergy Bank and OakNorth Bank.
Readers of the Legal Utopia blog will recall our review of the previous 40 lenders to seek which of the accredited lenders were providing:
Clear information on their website; and offer:
No personal guarantees (on loans under £250k)
No fees (arrangement or otherwise)
Loans for the self-employed or sole-trader
Loans for partnerships
Loans for limited companies
Loans from £10k
Loans with variable interest rates
12-months no repayments option
Our 'scan' review of all 40 accredited lenders, led us to recommend stopping by HSBC, NatWest and Ulster Bank first after receiving the highest scores. However, with the new accredited lenders, has this changed?
The new accredited banks include:
However, most of them have published limited information on the terms they will offer on coronavirus interruption loans. We reassessed these banks taking into consideration the information available from the British Business Bank.
Starling Bank received a score of 9 out of 10.
Co-operative Bank received a score of 8 out of 10.
Cynergy Bank and OakNorth Bank both received a score of 5 out of 10.
We would therefore include both Starling Bank and the Co-operative Bank in the 'first-stop' when hunting for the most flexible loan terms from accredited banks.
Recommended 'first-stop' banks:
More information from the British Business Bank is available here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/
We would, therefore, include both Starling Bank and the Co-operative Bank in the 'first-stop' when hunting for the most flexible loan terms from accredited banks.
The above is an honest opinion held by the author based on a quick review of the information made available from the lenders' websites via the above British Business Bank link.
Please seek independent financial advice.