Repaying your CBILS loan? Read this

Reading time: 2 min

Updated: December 7, 2021 at 9:43 am
Swoop is ready with some tips on making it easier to repay CBILS loans


The government-backed Coronavirus Business Interruption Loan Scheme (CBILS) helped many businesses avoid shutting up shop permanently at the height of the pandemic. Having served their purpose and blunted the sharp edge of an emergency, many businesses are now counting the cost of repayments now that the debt is being called in. 

Rhys Cunnah, Head of Unsecured and Asset Finance at Swoop, says that businesses need to consider the next phase of recovering from the pandemic:

It’s not quite a case of ‘act in haste, repent at leisure’, because at a time of uncertainty, business leaders did what they had to do. Going forward there are a few approaches businesses can adopt to make sure that they are not paying over the odds for problems they overcame in the past.

If you took out a CBILS loan, you will know that there has been a year of interest-free payments. When that year is over, the cost of payments increases. Rhys says:

Businesses have known that these increases are in the post, but with few options and the unfolding crisis, many took out loan products and decided to worry about the repayments later. Well, now it is ‘later’ and business leaders must consider their next steps.

CBILS has been replaced by RLS which offers lenders a government-backed guarantee to encourage them to agree loans to businesses. While this scheme has been extended until June 2022, the guarantee percentage has dropped and the products will be harder to access. 

Where there is need, there is opportunity,” says Rhys. “We can now put a new loan under the RLS with options of a potential 12 month interest free period along with a refinance of RLS over a potential longer period than their existing CBILs.

Such a move would be beneficial to businesses looking to reduce payments or increase cashflow. But with the clock ticking on the RLS, Rhys says that other options may be more attractive: 

Alternatively, and going into 2022, businesses may wish to refinance existing loans outside of government schemes. Refinance against assets is potentially a cheaper option and will give a clear path out of debt for businesses rather than constantly moving the financial furniture.

At Swoop, we are dedicated to quickly matching businesses with the right products that can make a big difference to their bottom line. And as things change, what is right for a business can change too. If you are struggling with repayments on your loan products, make it your priority to get them under control and find ways to make your life easier. 

To discuss your options with one of Swoop’s experts, get in touch today

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