#Coronavirus Interruption Loan Scheme

[marklyttleton]

Best Small Business and Start-Up Loans and Grants in the UK

Mark Lyttleton is an experienced business mentor and angel investor who helps founders to deal with the challenges involved in launching and scaling a successful business. This article will look at funding options for start-ups in the UK, with a particular focus on start-up loans and grants.

For an entrepreneur attempting to translate their promising idea into a profitable business venture, access to financing is crucial. For inexperienced entrepreneurs lacking credentials and contacts, securing a bank loan can be an uphill struggle given the significant risks associated with investing in early-stage businesses. Nevertheless, for those with an exciting product and solid business concept, there are several avenues to explore.

Small and medium-sized enterprises (SMEs) are the lifeblood of the UK economy, not only providing tax revenue but also supporting employment, enterprise and economic growth. To help UK citizens build and grow their businesses, the UK Government offers an assortment of different grants and loans.

The UK Government launched numerous business support schemes during the pandemic, including the Future Fund, the Coronavirus Business Interruption Loan Scheme, the Bounce Back Loan Scheme, the Kickstart Scheme, the Coronavirus Job Retention Scheme, the Local Restrictions Support Grant and the Additional Restrictions Grant. However, most of these schemes are now closed to new applications.

For UK businesses in need of an injection of collateral, there are numerous other business funding schemes to apply for in the UK. One of the most attractive benefits of securing a business grant rather than a loan lies in the fact that, unlike a loan, a grant does not need to be repaid.

Small business grants available in the UK include:

Grow It, a scheme that supports businesses that work on special projects that support the local community, providing not only expert guidance but also up to £15,000 in funding

CRACK-IT Challenges, a business grant scheme that encourages collaboration between academics and businesses, inviting SMEs to solve technological and scientific problems or develop new products

Arts Council National Lottery Project Grants, providing much-needed financial support to organisations with a focus on creative initiatives, including art galleries and theatres, providing grants ranging from £1,000 to £100,000

The Seed Enterprise Investment Scheme, a grant fund that encourages investors to back SMEs by providing tax incentives to those who purchase shares; through the scheme, companies can receive a maximum investment of £150,000

The Gigabit Broadband Voucher Scheme, which provides businesses based in rural locations with a £3,500 grant in order to upgrade to high-speed broadband

[fundingroutes]

Funding Routes provides the best offers and comparison for the Trade Finance, from where you can choose the best financial deal for your business. We have years of experience working in the Financial Market.

[makesworthacc]

The Coronavirus Business Interruption Loan Scheme

https://twitter.com/SanjaysahFCCA

INTRODUCTION

CBILS is a new scheme, announced by The Chancellor at Budget 2020, that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.

CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance. The scheme provides the lender with a government-backed guarantee potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. The borrower always remains 100% liable for the debt.

Overview of the scheme: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

CBILS: KEY FEATURES

Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.

80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.

No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.

Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees [1], so smaller businesses will benefit from no upfront costs and lower initial repayments.[2]

Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.

Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

The borrower always remains 100% liable for the debt.

ELIGIBILITY CRITERIA

Smaller businesses from all sectors [3] can apply for the full amount of the facility. To be eligible for a facility under CBILS, an SME must:

Be UK-based in its business activity, with annual turnover of no more than £45m

Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.

Please note: If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

NOTES:

Some lenders indicated that they would not charge arrangement fees or early repayment charges to SMEs borrowing under the scheme.

Fishery, aquaculture and agriculture businesses may not qualify for the full interest and fee payment.

The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools; Employer, professional, religious or political membership organisations or trade unions.

ACCESS TO THE SCHEME

Full details: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/for-businesses-and-advisors/

CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed on the British Business Bank website: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/

Businesses should approach their own provider – typically via the lender’s website. They may also consider approaching other lenders if they are unable to access the finance they need.

Decision-making on whether you are eligible for CBILS is fully delegated to the 40+ accredited CBILS lenders. These lenders range from high-street banks, to challenger banks, asset-based lenders and smaller specialist local lenders.

Note: if the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

WHAT TYPES OF FINANCE ARE AVAILABLE AND WHO OFFERS WHICH TYPE?

CBILS supports a wide range of business finance facilities, including:

Term loans

Overdrafts

Asset finance

Invoice finance

Additional application notes:

Given there is likely to be a big demand for facilities once the scheme goes live, The British Business Bank asks you to please:

Consider applying via the lender’s website in the first instance. Telephone lines are likely to be busy and branches may have limited capacity to handle enquires due to social distancing

Consider the urgency of your need – it is possible that some businesses may be looking for regular longer-term finance rather than ‘emergency’ finance, and there may other businesses with a more urgent need to speak with a lender.

FAQ Briefing sheet: https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/British-Business-Bank-CBILS-FAQs-for-SMEs-FINAL.pdf

A useful summary to compare business loans can be found on the KNOWYOURMONEY  website:  Loans Business Phrase loans business Loans Business

NEXT STEPS

Applications should be made to your usual bank or finance company.

We can advise you on making the loan application. There will be administration and information to collect before you make the application. Typically, banks will require three years trading results and a Statement of “Support and Resilience”.

The loan process typically involves:

Step 1: You submit an application (typically online);

Step 2: An account manager reaches out to you to learn more about your business, collect documentation and find terms that suit your need.

Step 3: Underwriters review your application and make a decision. They may contact you or your accountant if they have additional questions.

Step 4: You accept a loan offer and you’ll be fully funded. Source: https://makesworth.co.uk/the-coronavirus-business-interruption-loan-scheme/ For more information Structures and buildings capital allowances, Book a Free Consultation Following us: Twitter

[scottydd]

### Civil servants felt obliged to listen to Greensill

It is unclear exactly what alternatives were explored: the Treasury says releasing information would compromise future policy-making. But it has released enough to show that officials felt torn: they were sceptical but felt obliged to listen to Greensill’s proposals.

On April 16, for instance, Greensill requested another call to discuss his “important and urgent” proposals. Roxburgh said yes. Minutes of the conversation state: “You were clear that we were in listening mode.” He also committed to “take \[Greensill’s\] points away and consider them”.

Sunak appears to have felt similarly, making clear that Cameron’s friends would get a special hearing and the Treasury would exhaust all possibilities but not wanting to overreach. He texted the former PM on April 23: “I have pushed the team to explore an alternative with the Bank \[of England\] that might work. No guarantees, but the Bank are currently looking at it and Charles should be in touch. Best, Rishi.”

Good news followed 24 hours after Sunak’s texts: Roxburgh, in the third of nine meetings with Greensill, said the government would do some “confidential” research with trusted banks and businesses to see if its revised proposals might work. Greensill said the company was “very pleased to hear this news”.

Over this period, Greensill enjoyed access to officials, in some instances receiving responses within ten minutes.

Nevertheless, it became apparent that the company’s proposals were as inappropriate as they first appeared. The Treasury had already published information about the scheme: a sudden change letting Greensill take part would seem suspicious and potentially present legal issues. Sunak’s officials also feared that the proposals were too complicated and not guaranteed to put money in the pocket of business owners. Minutes from a call on May 14 state that Roxburgh spoke to Greensill “at the chancellor’s request”. The official asked “simple questions” but the idea “sounded complicated”, with minutes adding: “The government’s schemes were subject to intense media, parliamentary and public scrutiny.”

On May 18, Sunak signed off what seemed like another definitive no: officials wrote to Greensill saying they were not redesigning their scheme because their proposal “would not bring sufficient benefits” to small businesses.

Yet even then, Greensill, with Cameron in the background, kept on coming back. On June 11, Roxburgh told Greensill he was “still considering matters”.

Only on June 26, two and a half months after Cameron’s text to Sunak, did the Treasury finally give up, with Roxburgh saying he had “genuinely put in a lot of time” to explore Greensill’s ideas but, on CCFF, had run out of road. Greensill wrote saying he was “embarrassed” by his initial oversights and had come up with a “simple and elegant solution” but the government’s view did not appear to have evolved since June. It was not possible to use Greensill as an intermediary for small businesses in a loan scheme designed to help big companies. The idea, in short, did not make sense.

As administrators wind up what is left of Greensill’s empire, questions remain about how the company was able to get so close to the public sector, securing, between 2018 and last month, contracts to pay NHS pharmacies and staff and also become an accredited lender under another Sunak scheme, the Coronavirus Large Business Interruption Loan Scheme. The government has been asked to explain how Greensill was able to lend £400 million in taxpayer-backed money to one steel empire under that scheme, when the maximum to any one group was meant to be £50 million.

The Treasury says it was not responsible for that decision, although correspondence reveals that Greensill was, again, able to make personal requests to Sunak’s department on that scheme.

All of which affirms the issue at the heart of the scandal: why was Cameron able to get one man and one company such access to the people who shaped Britain’s response to the pandemic — and why did Sunak agree to help him?

Cameron’s spokesman refused to respond.

## The ‘nuts’ email sent by Cameron

Sheridan. Great to talk. Here are the bullet points I promised. What we most need is for Rishi to have a good look at this and ask officials to find a way of making it work. It seems nuts to exclude supply chain finance. We all know that the banks will struggle to get these loans out of the door — and so other methods of extending credit to firms become even more important. All good wishes DC.

● Greensill is a significant UK employer and its most valuable fintech \[financial technology business\], and we are keen to use our technology to help in this time of national crisis.

● We delivered £120 billion in credit to 2.6 million SMEs \[small or medium-sized enterprises\] in 175 countries last year — and are growing at more than 100 per cent per year.

● The Covid crisis has caused a very sharp increase in the demand from SMEs for liquidity — at the same time as many banks and investors are standing on the sidelines.

● Greensill applied to the Covid Corporate Financing Facility (CCFF) to help it meet demand. HMT said “no” — apparently because the CCFF is to provide direct liquidity to non-financial corporates making a material contribution.

● All Greensill does is provide direct liquidity to non-financial corporates who make a material contribution to the UK economy — indeed we go one better and deliver liquidity directly to more than 100,000 SMEs in the UK today ... to pay invoices quickly that are generated by UK businesses in the real economy. Funding raised against invoices issued to large companies goes directly into the supply chain at every level, rather than to the big corporates.

● Our application conforms with all the conditions of the facility other than it has a securitisation company issuing the commercial paper rather than the finance subsidiary of Vodafone/NHS etc.

● In fact, the BoE \[Bank of England\] purchased identical supply chain finance paper in the financial crisis, so the precedent is there. Recall Andrew Bailey \[governor of the Bank\] has spoken of the unique importance of supply chain finance in this time of great economic \[unclear\].

● Surely HMG should be seen to be supporting UK fintechs — who are creating employment, driving innovation and already delivering billions in ultra low-cost liquidity to British SMEs — particularly when it has been proven.

● Allowing a securitisation company that issues qualifying commercial paper to access the facility does not create a bad precedent — it is one that a number of fintechs, like Greensill, could instantly use to help deliver cash to SMEs.

● Greensill (and fintechs like it) have the scale, technology, UK-based staff and capability to get credit — in scale — into the hands of UK SMEs in days.

Our ask is that you direct officials to work with Greensill to ensure the eligibility criteria are met — we are prepared to be flexible, but we need to work at speed. A failure to do so will, almost certainly, mean tens of thousands ... Greensill (and other fintechs) have to materially reduce their activities.

[holytheoristtastemaker]

The government stands accused of leaving IT contractors “out in the cold” by denying limited company contractors access to financial measures designed to support the self-employed through the Covid-19 coronavirus outbreak. In an address to the nation on Thursday 26 March 2020, the chancellor, Rishi Sunak, outlined details of a support package the government will roll out to help self-employed people through the pandemic. This includes a promise to pay self-employed people who earn up to £50,000 a year a maximum of £2,500 a month for at least the next three months, if their ability to earn an income has been adversely affected by the coronavirus. These payments will be made possible through the provision of a taxable grant worth up to 80% of the average monthly profits these individuals have banked over the past three years. “To make sure only the genuinely self-employed benefit, it will be available to people who make the majority of their income from self-employment,” said Sunak. “And to minimise fraud, only those who are already in self-employment, who have a tax return for 2019, will be able to apply.” Anyone who is yet to submit their latest tax return  will have four weeks from 26 March 2020 to send one in to ensure they can access the financial support offered through the scheme, which should start making payments to people “no later” than early June, said Sunak. “If you are eligible, HMRC will contact you directly, ask you to fill out a simple online form, then pay the grant straight into your bank account,” he added. In the meantime, self-employed people who are already struggling with a downturn in their income can access business interruption loans, and apply to receive Universal Credit payments, said the chancellor. News of the Self-Employed Income Support Scheme has been broadly welcomed by trade bodies and other contracting stakeholders, as the government has come under growing criticism in recent days for not doing enough to support the self-employed through the coronavirus outbreak. However, there are concerns that anyone who is relatively new to self-employment will not be able to access the support measures, and it is also off-limits to limited company contractors, which could have huge implications for IT contractors across the UK, particularly those who have already lost work because of the coronavirus outbreak, or as a result of private sector organisations banning the use of limited company contractors as part of their compliance strategy for the now deferred IR35 tax avoidance reforms. In guidance issued by the government in the wake of Sunak’s speech, it was confirmed that “those who pay themselves a salary and dividends through their own company” are not covered by the self-employed support scheme, but can apply to have their salary covered by the Coronavirus Job Retention Scheme.

http://damianfallon.blogspot.com/2020/03/coronavirus-it-contractors-left.html

[fundingroutes03]

What Is the Recovery Loan Scheme?

The UK government has announced a brand new government backed loan scheme, aimed at supporting UK businesses as they recover and continue to grow after suffering the economic impacts of the Covid pandemic. The scheme is open to applications until December 2021, and replaces the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBL).

Read more here: https://www.fundingroutes.com/post/the-recovery-loan-scheme

Business Name: Funding Routes

Address: England and Wales

Phone: +44 1252 214032

[fintexcapital]

RLS replaces the previous state-backed Covid schemes including the coronavirus business interruption loan scheme (CBILS), which ThinCats was accredited for last April.

[swarajya7793]

Significant COVID-19 Impact on Bubble Wrap | Chemical and Materials Industry | Data Bridge Market Research

COVID-19 Impact on Bubble Wrap in the Chemical and Materials Industry

INTRODUCTION

In packaging market every manufacturer have expected the crises which will occur due to the pandemic situations which is created by the COVID-19 in all packaging market globally but COVID -19 have the mixed situation of patterns for the bubble wrap manufactures in developing countries. The jumbled situation can be analyses as we can see that demand for packaging for, healthcare products, groceries and e-commerce transportation will rise sharply along with this, the demand for industrial, luxury, and some B2B-transport packaging have declined due to the lock down in the several regions due to which manufacturing sector have been effected on the larger extend. The impact COVID-19 on the bubble wrap manufactures can be seen with the product portfolios which are offered by manufacturers in the global packaging market.

IMPACT OF COVID-19 ON PACKAGING 

Bubble wrap is soft, tough, and flexible which is used for packaging of numerous consumer goods. The most used packaging type among all the types which is used in the pandemic situation of the COVID-19 are bubble wrap which helps to increase the life span of food and beverage product and is used on a large scale in the food and beverage industry, automotive industry, pharmaceutical and healthcare industry, electrical and electronics industry and others. Bubble wrap are used to produce carrier bags, pouches, and packaging materials and cover films for agriculture applications. As due to the COVID-19, the disruptions in the supply chain can be seen which increases the demand for the bubble wrap as bubble wrap provide the protection from the bacteria and increase the life span of product during the storage.

Due to the COVID-19 people are not buying the product which are unpacked or product which are in the unhygienic conditions due to which bubble wrap on the vegetable and fruits in the retail store have increase which help to lower the transmission of the dangerous virus from one person to another.

However, the price of plastic resin will fall due to the decrease in the price of crude-oil prices, which will impact the cost of oil-based raw material products.

IMPACT ON DIFFERENT END USER INDUSTRY

HEALTHCARE INDUSTRY 

Pandemic will not hamper the growth of packaging products in healthcare industry. Bubble wrap is widely used in the health care industry for the packaging of the medical equipment. With the effect of the COVID-19 demand will rise across the different healthcare-packaging types and related substrates which including closures, pumps, flexible blister foils and rigid plastics. Similarly, demand will rise for packaging which is used in the dietary supplements products such as vitamins and for essential supplies of medicines and products which consumers will needed during the lockdown situation.

FOOD AND BEVERAGE INDUSTRY 

Bubble wrap are used in the packaging of the food and beverage packaging which are more transported in the pandemic situation of COVID-19. Bubble wrap is more in demand in the food and beverage industry as these films provide protective layer over tray foods to improve shelf-life and protect the contents from exterior elements including moisture, oxygen and other contaminants. Due to the pandemic situation in the region demand for the packed food have increased from 35%-40% in the developed region due to which the demand for the bubble wrap have increases. By analyzing the situation several food stores have come up with the food delivery facility which also boosts the products which are manufactured from the bubble wrap. The increase in food delivery and takeaway services is expected to drive the demand for disposable and flexible packaging even further.

E-COMMERCE INDUSTRY 

COVID-19 self-isolation and social distancing measures have been put in place which certainly made an impact on e-commerce over the past couple of weeks. Workers in many regions and countries have been asked to work from home due to which the demand of goods have increased online which have a positive impact on the bubble wrap as packaging products re more used in the packing of online orders in several countries. Several stores have taken the decision for the use of the home delivery of the essential goods. Due to increasing online ordering of essential good which needed the bubble wrap for the packaging of product had increased the demand in e-commerce industry.

COMPANIES STRATERGIC INITIATIVES DURING COVID-19

·         In May 2020, Smurfit Kappa has launched safe shield desk protectors which are used in school, College and offices. This shield has helped to maintain the distance from person to second person and also protect the spread of novel corona virus.

·         In April 2020, Smurfit Kappa has taken a step to help communities which is affected by COVID-19 situation. They introduce a product which helps to maintain the distance and to keep safe from corona virus. These steps are helpful to improve our good will in the market.

·         International Paper has a manufacturer of recycled fibre-based packaging goods that contributed two million corrugated boxes and films to COVID-19 for help. The firm has raised the market for food help packaging items because of the COVID-19 pandemic

·         Rapid Action Packaging (RAP) has launched a new Sustainable Face Masks which fully biodegradable or safely disposable. These mask are very cheap just start from 32P.

·         Dean Packaging Company have received the £20k funding package from UK Government’s Coronavirus Business Interruption Loan Scheme which increases the production of the film packing production for the packing of the essential products in the situation.

CONCLUSION

On conclusion, packaging industry has grown as compare to the other manufacturing industries. Packaging is an essential component for the food and beverage product in the transmission from one to another. In the pandemic situation of the COVID-19 supply chain have exposed to the worst situation due to which manufactures have faced many losses as raw material for the did reach on time which leads to the cancellation of the various orders of export and imports. However, some manufacturers have to shut down the product or to shift to new products that are important to fight the pandemic and for this the forest, paper and packaging companies need to remain focused.

Today the spread of the novel coronavirus has triggered significant market damage across the globe. Most businesses have stopped immediately and the effect on e-commerce of the coronavirus pandemic is not yet clear. The towns are closed down, and social distancing has become a modern norm. Customer’s wants every product should be covered from wrap which are help full to protect from COVID-19.

The raw materials which are need for the manufacturing of the bubble wrap which are used in the packaging of the health care and the food and beverage products are extracted from the crude oil. Due to the less consumption of the crude oil in the various regions have lower the price due to which manufacturing cost of the raw material for manufacturing of films have lower down which leads to increase in the revenue for the various manufactures and also attracting other players to enter into the packaging market.

The pandemic has also show case the U.S. pharmaceutical Market players an opportunity to become an alternative hub for manufacturing of intermediates which will consequently raise the demand for domestic bubble wrap manufactures and suppliers. China and India have also increase the usage of the bubble wrap in the packing due to more demand of the essential products in the COVID-19 situations.

Several manufactures closed the factory due to heavy lose. Market players are making the strategic action to increase the demand of the bubble wrap in the market and to increase the price so to earn revenue and government also helping the manufactures by making policies which helps the manufacturers to maintain stability.

[makesworthacc]

The Coronavirus Business Interruption Loan Scheme (CBILS) Update

Update

This week seven of the largest lenders to UK SMEs have written an open letter stating a key change to the CBILS application process:

“Following the changes to the scheme announced today lenders will only ask businesses for information and data they might reasonably be able to provide at speed and we will not require the provision of forward-looking financial information or business plans from businesses applying for CBILS-backed lending, relying instead on our own information to assess credit and business viability.

https://www.ukfinance.org.uk/press/press-releases/uk-finance-issues-joint-statement-behalf-seven-largest-sme-lenders

This means that business owners applying to these seven banks (Barclays Bank UK, Danske Bank, HSBC, Lloyds Bank, NatWest, Santander, and Virgin Money) no longer need to prepare cash flow and business plan when applying to CBILS. This dramatically reduces the efforts required to put an application together.

Despite it now being a simpler process to apply for CBILS financing, a business owner should consider if taking on debt at this time is the right thing to do.  To help make this decision preparing a forecast may actually be a very helpful tool to see how the cash position changes under different assumptions and scenarios.

This announcement appears to have arisen following a Prudential Regulatory Authority (PRA) announcement at the start of this week which requested lenders to consider the following in respect to CBILS:

“The performance of the business prior to the Covid-19 outbreak; a view of how the loan will be repaid in due course, relying on judgement in the absence of financial forecast information; and the general prospects for the sector in which the business operates once the effects of the pandemic have receded.”

https://www.bankofengland.co.uk/prudential-regulation/publication/2020/statement-on-the-regulatory-treatment-of-the-uk-cbils-and-the-uk-clbils

R&D Tax Credits and CBILS

R&D Tax Credits and CBILS are classed as state aid.  Under state aid rules a business is only able to receive one form of state aid for a project.

HMRC have issued the following wording on this:

Are new Government support schemes introduced in response to the Coronavirus, such as CBILs, State aids or subsidies? Will they affect a company’s ability to make a claim under the SME scheme?

The Government has notified CBILS as State aid under the European Commission’s new Temporary Framework for COVID-19. The measure is a fully notified aid, so the restriction on the receipt of other State aid (s1138(1)(a) CTA 2009) potentially applies, if the CBILS relates specifically to the company’s R&D expenditure [on a project] rather than being intended more generally to support the company. This will depend on the facts. We will be monitoring the application of this rule and welcome feedback.

https://www.tax.org.uk/sites/default/files/200402%20HMRC%20Covid-19%20R%26D%20Update.pdf

This appears to state that if a CBIL is received by a business to help finance a specific project then that project is not eligible for future R&D tax credits (or at least SME R&D tax credits). It may still be eligible for RDEC.

However, if the CBIL is used for general business purposes (which seems more likely in most cases) then a project receiving R&D tax credits should still be eligible to receive them in the future.

It should be noted that HMRC has said they will monitoring claims as they come which shows the answer isn’t black and white and further guidance is likely to be produced in due course.

Source: https://makesworth.co.uk/the-coronavirus-business-interruption-loan-scheme-cbils-update/

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Watches of Switzerland full-year ecommerce sales more than double

Demand for luxury watches has grown at Watches of Switzerland. Image: Screenshot of watches-of-switzerland.co.uk

Watches of Switzerland today said ecommerce sales more than doubled in its latest financial year as customers responded to its international and multichannel model and as it invested in areas from digital marketing to CRM.

  The luxury watch retailer, ranked Top500 in RXUK Top500 research, today reported ecommerce sales 120.5% ahead of the previous year in a full-year trading update. Online sales, it said, were boosted by advanced digital marketing, customer relationship management and clienteling. Across all sales channels, group revenue rose by 11.7% to £905.1m in the 53 weeks to May 2 2021 – from £810.5m last time. The growth came despite a longer than predicted 16-week lockdown in the fourth quarter of the year.

  Over the full year, UK sales grew by 3.6%, despite stores closing for 42% of potential trading hours and despite reduced business from tourism and in airports. Watches of Switzerland saw faster growth in its US market, where revenue rose by 32.7% on the previous year and where shops were open for 67% of potential hours. Overall, its shops were closed for 26 weeks of the year.

  Luxury watch sales grew in the full year by 16% on the previous year, to represent 87.1% of group revenue – up from 83.9% last time. But luxury jewellery sales fell by 12.1% to £60.8m. Most sales were from domestic (94.7%) customers in each of its markets – up from 72.5% in the previous year. Full-year pre-tax profits are expected to come in at between £104m and £107m – up from £78.1m in 2020.

  In the fourth quarter alone – the 14 weeks to May 2 – group revenue grew by 76.1% to £218.2m, with UK sales 49.3% ahead at £126.2m, and US sales 133.6% ahead at £92m. Watch sales grew by 87.3% to £195.1m, while luxury jewellery sales fell by 18.5% to £11.7m. The retailer said sales were high in its New York, Florida and Georgia stores, with sales improving in Las Vegas. It has also seen early encouraging performance after relaunching luxury jewellery in its US-based Mayors business, and that sales

  Brian Duffy, chief executive of Watches of Switzerland, says: “Throughout the year we either met or exceeded our guidance despite the changing circumstances, in particular the much longer-than-expected last lockdown in the UK. In the UK, we delivered a very robust performance, overcoming a total of 26 weeks of store closures and hugely reduced travel and tourism business. In the US we generated an outstanding result with very strong momentum.

  “We responded to the challenging environment by increasing investment in Capex, digital marketing, systems and stock which has resulted in the positive momentum that we carry into FY22. Our guidance for FY22 reflects our confident outlook for the luxury watch and jewellery categories and the success of our modern, international and multichannel model.”

  Looking ahead, the retailer expects its sales to pass £1bn in the coming year, and it plans store openings in both the UK and the US.

  Watches of Switzerland now plans to repay all of the support it received for furloughing staff during the year, and it has also repaid and cancelled a £45m coronavirus business interruption scheme loan because of strong performance. Now the business is to launch a Watches of Switzerland foundation to offer support to its local communities in the UK and the US, with an initial £1.5m contribution and a further £1.5m in the next financial year.

[grbizm]

Recovery to accelerate, Capital allocation

Recovery to accelerate, Capital allocation

Simon Bittlestone, CEO of the Metapraxis shared his thoughts are ticks regarding the successful management of his firm and the ways to tackle the crisis. “The uncertainty thrown up by the COVID-19 pandemic has meant that many businesses have been feeling the strain and extra pressure on their cash flow. While measures such as the Coronavirus Business Interruption Loan Scheme (CBILS) were put in…

[haftaichinews]

GFG Alliance says applications for government Covid loans were lawful | Steel industry

GFG Alliance says applications for government Covid loans were lawful | Steel industry

Join Hafta-Ichi to Research the article “GFG Alliance says applications for government Covid loans were lawful | Steel industry” The metals empire owned by Sanjeev Gupta has said it followed the law when it made a series of applications for emergency coronavirus loans backed by the government. Various GFG Alliance companies applied to the coronavirus large business interruption loan scheme…

[haskelansel]

Accountants in Southend

If you have a business in Southend or you work as self-employed or freelancer in Southend then you will obviously need an accountant. GoRings Accountants in Southend provides accountancy services Bookkeeping, HMRC Self Assessment Tax Return, Payroll PAYE Services, VAT Return, Bounce Back Loan, Coronavirus Business Interruption Loan Scheme (CBILS). Contact us today!

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CBILS Deadline Approaching Fast on the 31st March 2021

The Coronavirus Business Interruption Loan Scheme was created by the British Business Bank in order for the government to provide working capital to UK businesses that were in trouble due to the Covid-19 pandemic. The interest on the loans to businesses is completely covered by the government for the first 12 months. It was designed to boost growth and help cash flow for businesses in trouble as a result of the pandemic.

Read more here: https://www.fundingroutes.com/post/cbils-deadline-approaching-fast-on-the-31st-march-2021

Business Name: Funding Routes

Address: England and Wales

Phone: +44 1252 214032

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COVID-19 BUSINESS SUPPORT IN UK

COVID-19 BUSINESS SUPPORT IN UK

The banking and finance industry has introduced a range of measures designed to help businesses of all sizes access the finances, support and guidance they need during the coronavirus pandemic. These measures include the Coronavirus Business Interruption Loan Scheme (CBILS); the Coronavirus Large Business Interruption Loan Scheme (CLBILS); the Bounce Back Loan Scheme (BLBS); and the Corporate…

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Steel tycoon Sanjeev Gupta and financier Lex Greensill exploited a Covid-19 state guarantee scheme for struggling companies to extract £400 million of taxpayer-backed loans — eight times the limit.

Gupta used the Australian banker Greensill to borrow so much using the government’s coronavirus large business interruption loan scheme (CLBILS) that the borrowing spree is understood to have sparked alarm in the Treasury.

The scheme guarantees 80 per cent of loans from accredited lenders — up to a maximum of £50 million per group if the borrower is using supplier financing. However, Greensill is understood to have used supplier finance to hand eight state-backed loans of £50 million each to Gupta’s GFG Alliance empire and companies linked to him — run by people known internally as “friends of Sanjeev”.

The government’s British Business Bank (BBB), which oversaw CLBILS, withdrew guarantees for Greensill’s loans to Gupta and associated companies three weeks ago after uncovering the breaches. It declined to comment on the specifics of the case but said support can be withdrawn for “serious non-compliance”.

The revelation highlights the aggressive financial engineering that propped up his Gupta Family Group (GFG) Alliance, which has 35,000 staff and trades under the Liberty and Simec brands. It is fighting for survival after Greensill Capital’s insolvency last week cut off funding.

Gupta hopes he can buy back the business from lenders that control its assets, including Greensill, by offering them a fraction of the cash they are owed. Gupta is talking to White Oak, a business finance firm, about obtaining new funds, but is also consulting accountants PwC about putting businesses such as his Caparo steel tubes into administration.

The Cambridge-educated tycoon, 49, amassed huge sums of state support over a five-year acquisition spree, helped by friends with political ties, such as Greensill adviser David Cameron. In 2016, Scottish first minister Nicola Sturgeon handed him a 25-year government guarantee worth £575 million linked to a Highlands aluminium smelter and hydro-electric plant. The Scottish government also lent him £7 million to buy two Scottish steelworks. Gupta has tried to get subsidies to burn waste plastic in his south Wales power station.

He recently tried to extract export credit guarantees from the government. UK Export Finance said it had no exposure to GFG. Sources said America’s export credit agency, Exim, had agreed to support him. The CLBILS has been used to guarantee loans totalling £5.3 billion.

The Financial Times reported last October that two metal trading companies linked to Gupta had borrowed from the CLBILS: Aar Tee Commodities and Simec International. Simec is owned by Gupta’s father, Parduman, and Aar Tee is run by Ravi Trehan — Gupta’s partner on his first big deal in the UK, a south Wales steel mill in 2013. Aar Tee has said it is a “separate independent business”.

Gupta’s total borrowing from CLBILS has remained unclear until now as borrowers are not obliged to register charges at Companies House. However, a text message from a Liberty director to another lender, seen by The Sunday Times, appeared to suggest they bend the rules to borrow more cash via Liberty Commodities: “Companies such as LSN (Liberty Steel Newport) are precluded from borrowing directly due to the government loans they have but ... there should be a borrowing base structure that can work under English law.”

GFG declined to comment on its use of the CLBILS. Greensill is challenging the removal of the state guarantee. It claims it won approval for the borrowing spree when its lawyers asked the BBB whether a group of related companies (which the lawyers did not name) could use the CLBILS to obtain multiple loans.

While the CLBILS allows some companies to borrow up to £200 million, that must be pre-approved with the BBB. Its rules state that “lenders and borrowers must not conspire to circumvent the spirit of the [scheme] by seeking to structure around these requirements”.