Has anyone been succesful with CBIL loan?

[The Soup Dragon]

I have just done the initial application to HSBC online and after 3 days haven't even had an acknowledgement of application. I am wondering if any of our readers have successfully arranged a CBIL loan and what sort of rates have been secured. I am think also of approaching funding circle as a comparison with HSBC

SD

 

[Mark T Jones]

It’s not really relevant what other members have achieved since their circumstances, needs and financials are unlikely to be the same as yours

That said a good point was raised earlier that some of the regional business support agencies can be a good source of loans

what really matters is that you demonstrate clearly (with facts and figures) that

- you had a viable business prior to lockdown
- you have a robust recovery plan
- that you are applying for the ‘right’ amount (that’s a topic in its own right).

 

[Porky]

I have just done the initial application to HSBC online and after 3 days haven't even had an acknowledgement of application. I am wondering if any of our readers have successfully arranged a CBIL loan and what sort of rates have been secured. I am think also of approaching funding circle as a comparison with HSBC

SD

Hi SD,

If you qualify for a Funding Circle loan I would go for that, I can’t get an FC loan because they want guarantees from more than 50% of shareholders and that’s just not possible for us. FC will be significantly cheaper than HSBC without any doubt imo

 

[Mark T Jones]

Hi SD,

If you qualify for a Funding Circle loan I would go for that, I can’t get an FC loan because they want guarantees from more than 50% of shareholders and that’s just not possible for us. FC will be significantly cheaper than HSBC without any doubt imo

they can’t take PGs on a loan less than £250k

 

[Neil Lukins]

HSBC are providing CBILS at around 3.49% and will be far cheaper than Funding Circle. FC advertise cheap rates but realistically I've never seen them come close to their advertised rates.

Stick with the HSBC if you can wait it out. As an ex HSBC member of staff I'd echo what Mark has said and produce valid rationale around why you need the loan, how you was pre-covid and what will happen post-covid.

Good luck and fingers crossed for you.

 

[Mr D]

I have just done the initial application to HSBC online and after 3 days haven't even had an acknowledgement of application. I am wondering if any of our readers have successfully arranged a CBIL loan and what sort of rates have been secured. I am think also of approaching funding circle as a comparison with HSBC

SD

A few - a very few - have reported being successful.
Most people appear to be not applying or if getting turned down not mentioning it so even across multiple forums it's impossible to get a decent count of either award or rejection in public.

 

[swankypants69]

HSBC are providing CBILS at around 3.49% and will be far cheaper than Funding Circle. FC advertise cheap rates but realistically I've never seen them come close to their advertised rates.

Stick with the HSBC if you can wait it out. As an ex HSBC member of staff I'd echo what Mark has said and produce valid rationale around why you need the loan, how you was pre-covid and what will happen post-covid.

Good luck and fingers crossed for you.

What will happen post-covid? Is that where we all get our crystal balls out?

Had a look a night or two ago at NatWest application and was too tired to complete it. Needed lots of info that as a small business I don’t have at my finger tips, so will have to save it for a night when I’ve had an easier day

 

[Mr D]

Roll up, special offer on crystal balls...

Seriously some things we can predict. Banks will be unwilling to lend much, diving headfirst into at the very least a recession - possibly a worldwide depression. And people will still want food, drink, shelter and stuff they consider important. Which for a few will include crystal balls.

Have a look around at what experts are suggesting and what people in your trade are saying. Then weigh the often competing ideas and work out strategies to deal with different scenarios.
May want to include in there a large group of people isolating for a couple of years or so. Business opportunity or annoying distraction depending which side of the door you are on...

 

[Porky]

they can’t take PGs on a loan less than £250k

Agreed the rules under the CBILS guidelines state no guarantees required however FC are underwriting loans on the standard existing basis at the moment. CBILS is due to go live soon at FC but not yet.

 

[Porky]

HSBC are providing CBILS at around 3.49% and will be far cheaper than Funding Circle. FC advertise cheap rates but realistically I've never seen them come close to their advertised rates.

Stick with the HSBC if you can wait it out. As an ex HSBC member of staff I'd echo what Mark has said and produce valid rationale around why you need the loan, how you was pre-covid and what will happen post-covid.

Good luck and fingers crossed for you.

Hi Neil,

I would go as far as to say that if HSBC agree the loan to SD at all under CBILS I would be VERY impressed. And in the event of that miracle occurring at 3.49% rate I think I would be prepared to show my backside in Poundland’s window.

Not sure what branch you worked at but that’s not the HSBC I recognise as an SME that’s for sure!

 

[sminter1st]

I'm in the process of applying too, so just for anecdotal input, after about 3 days from the application, I received a phone call from a guy working from home who was really nice actually, sounded a bit harassed, which would be quite expected. From what I gathered, he's basically filling in forms to send to underwriters, but he did try hard to be on 'my' side and fix the wording I had put to make the business sound viable etc. In the online application I'd included profit and loss for 18/19 and as we've finished 19/20 and I keep the books I had that too. You have to say what steps you are taking to keep the business going, the pre/post COVID situation. He did say HSBC would never usually lend to restaurants as they're too unreliable, although they did give us a decent start-up loan a few years ago, but they would only consider us because of the government scheme. Interestingly, he said we were the first restaurant he'd received an application for. Obviously he couldn't say how it was looking either way but he said forget about it for a week now as everything takes so long and they have to get a case number from the government which takes a long time.

About 2 days later, he came back via secure email (yesterday in fact) asking if I could break down what the money was going to be used for, and some more detail on household income/drawings, and if the books were by accountant (we're an unlimited partnership), he said that part didnt really matter.

I am quite happy to let the forum know how it continues, to be honest, we are not holding out at all to receive it but you never know...

 

[Mark T Jones]

Agreed the rules under the CBILS guidelines state no guarantees required however FC are underwriting loans on the standard existing basis at the moment. CBILS is due to go live soon at FC but not yet.

time lag they are now only writing CBILS loans.

 

[Richard Cole]

I applied for a CBILS loan in early April and was approved yesterday. I bank with Santander and approached them first for an extension for my overdraft, they took 4 weeks to turn me down. I then approached a small regional lender who I have arranged a loan with a couple of years ago to open a second shop, quite a few hoops to jump through, lets face it no one is going to just dish out money willy nilly without some sort of proof of past history, forecast and ability to pay it back but I had my loan approved by them yesterday. I also applied for CBILS through Santander as a backup should the smaller regional loan company not help, after 3 weeks they have just got in contact requesting further information. The banks seemed to have made it impossible to get in contact with, telephone calls not answered, emails not replied to and very long waits to applications for overdrafts and loans. All i can say is look at the approved lenders on the CBILS website as it lists all the approved lenders there. I used one that only deals with businesses located in the West Midlands, BCRS Loans and can highly recommend them, emails answered, get to speak to someone on the telephone all in all very helpful. However whoever you approach make sure you have done your homework first, get previous profit and loss, balance sheets, management accounts, fcst cashflow for next 6 months and 12 months, personal income and expenditure and assets to show affordability and good idea to check your credit file on experian to make sure there is no nasties lurking in your credit history.

 

[Sarah Dinnage]

Hi Soup Dragon

I bank with Hsbc, A few days into the start of the issues and just as CBIL was offered say a month ago I called the bank and left a message. I got a call within a week offering me their own product or the option of someone from the CBIL team calling me back. I wasn’t in a rush and wanted to understand different rates so asked for a call back from the CBIL team.

Over Easter weekend (3 weeks after my initial enquiry) someone called and asked if it needed to be dealt with immediately as they would prioritise if so, I wasn’t in a rush and my accountant is mid way through my books so I said just call back to suit. Someone called on Tuesday and we did a phone application, because what we were asking for is a fairly low amount he didn’t need my accounts and we bank with them so he could see where we were at. He took the details to refer on and I had confirmation today we are good to go if we want to.

So I would say give it another week and you should get a call. It’s been so far surprisingly easy but we have still got to sign forms.

With regard to rate HSBC have changed their product so initially when I called it was 3% variable with 6 months before you had to pay but now it’s 4% fixed with a 12 month gap before you pay. We were allowed to choose because we made the application before they changed the offer.

 

[sminter1st]

We got approved this morning and they are drawing the paperwork up...

 

[Mark T Jones]

We got approved this morning and they are drawing the paperwork up...

Great news