MarketFinance raises £50m to support CBILS “last minute dash”
MarketFinance has raised £50 million from an Israeli asset management firm to continue lending under the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS).
Viola Credit stumped up the capital as MarketFinance launches a new application process. The firm offers a combination of business loans, invoice finance and revolving credit facilities.
MarketFinance says it has secured the funding to help those involved in the “last minute dash” to secure the government loans.
CBILS provides financial support to small and medium-sized enterprises (SMEs) across the UK losing revenue as a result of the coronavirus pandemic. The scheme is a part of a wider package of government support for UK businesses and employees.
The initiative will conclude at the end of September 2020 with pre-submitted applications in September being valid until the end of November.
“Only 60,409 CBILS facilities have been approved since the pandemic started, versus 1.2 million Bounce Back Loan approvals,” says Anil Stocker, CEO at the firm.
“This shows there are many businesses who could still benefit from accessing CBILS finance before the scheme ends.
“For many who took a Bounce Back Loan, there is now a short window where they can refinance onto a larger CBILS facility which could see them over to the new year.”
Businesses applying via MarketFinance can make a single universal application and view various options available to them as a result.
The firm says that even with “just a few pieces” of information about a client it can make an instant decision.
Stocker says that his firm has lent around £10 million per month since launching with CBILS, and that funds issue 40% faster than at the start of the COVID-19 pandemic.
“We’re constantly working on how we can reduce the time to funding for our new applicants and existing users.”