Lowton Motor Company set to accelerate out of COVID-19 impact with CBILS support
Industry News / Loans27th July 20200 CommentsIeuan Evans
Family-run car dealer, Lowton Motor Company, has become the latest business to receive support through the Coronavirus Business Interruption Loan Scheme (CBILS) backed by alternative lenders, rather than a bank.
The support, totalling £400,000, was made up of two CBILS loans from independent finance providers, 1pm and Funding Circle. It arrives at an important time, allowing the business to continue its impressive growth, whilst also guaranteeing the same quality of service to its staff and customers.
Lowton Motor Company will use the money to refinance some of its existing bank finance, with the remainder to fund working capital. By refinancing, the business will be able to reduce monthly outgoings with alternative finance being more competitive than its existing bank facility.
After being declined by the bank on a CBILS facility, Lowton Motor Company were able to secure an alternative CBILS option within a week through our funding manager, Brad Britch.
On the merits of exploring CBILS, Brad said,
“We’re seeing an increased availability from lenders as more of them have moved towards CBILS lending over the last couple of months. There is often a reliance on the high street banks for financial support and they can’t always fulfil that need, so having a pool of alternative lenders who can support with the likes of CBILS and other alternative finance methods is a lifeline for businesses right now.
“The scheme won’t be around forever and it costs a business nothing to take the money now and pay it back early. It’s government-backed and it’s there to be used, so I’d urge every business owner who might be worried about any future uncertainties to at least explore these options.”