Further Accounts Filing Extension

 

It seems like ages ago that the Chancellor stood alongside Boris Johnson and announced £330bn of loans which would be made available to businesses through banks with an 80% guarantee from the government.

The larger business loans, which effectively require them to issue corporate paper, will not be applicable to the most of the motor trade. What on the face of it seemed the best route for retailers was the CBILS. Whilst we are still waiting for the exact mechanisms to be finalized, we now have sufficient clarity that we can provide guidance on what businesses should be preparing in order to apply for these loans.

Firstly – there are currently a couple of caveats.

In order to apply, current turnover levels have to be under £45m. This excludes most motor retailers, however we understand that representations are going on from many side, including ourselves, to get this ceiling lifted. We would encourage businesses who think they may need a loan to prepare their application in the hope and expectation that the ceiling may be lifted.

In addition the loans can only be granted for businesses which are viable. Whilst you could argue that no business could currently be described as viable, discussions I’ve had with senior figures in two banks indicate that they are taking the practical approach that, if the business was viable before, it meets the criteria.

ASE has put together the attached guide on the considerations to take into account prior to taking a government backed loan and the items you will need to include.

In case of any further questions please contact at info@ase-global.com Tel:  +44 (0)161 493 1930