ThinCats is urging firms to get prepared as it anticipates a last minute rush before the coronavirus business interruption scheme (CBILS) ends this month.
Businesses have until 30 September to apply for government-backed CBILS finance.
ThinCats, one of several accredited alternative lenders providing CBILS, has released five tips to boost the chances of applicants getting approved.
It suggests using a corporate finance adviser, claiming they will be able to identify the right type of lender for a business’ needs and can help manage the application process.
Applicants should check a potential lender’s key lending criteria as there may be limits on loan size, sector, profitability, leverage ratios and type of security, ThinCats said.
Read more: The P2P lenders offering CBILS finance
Businesses should also ensure key information is provided at the point of application so they can show an application was made before midnight on 30 September.
The business lending platform warned against leaving applications until the last minute due to the high volumes providers will be handling and suggests applicants need to prepare a flexible financial model to show they can service the debt in different scenarios.
“More than 60,000 UK businesses impacted by Covid-19 have so far benefited from more than £13bn of funding through CBILS,”Amany Attia (pictured), chief executive of ThinCats, said.
“With only 30 days left until the end of September deadline for applications we expect a last-minute rush as businesses seek to take advantage of CBILS features such as the government covering the cost of the first 12 months’ interest.”