Life after the Coronavirus Business Interruption Loan Scheme (CBILS) – How Hydr can help

The Coronavirus Business Interruption Loan Scheme (CBILS) was launched by the UK Government in March 2020 to provide financial support to SMEs who were seeing their revenue and cash flow disrupted as a result of the pandemic.

Generally regarded as a success, nearly 110,000 businesses have borrowed £26.39bn* since it was launched. All businesses approved for a CBILS loan were offered a government-backed guarantee for their repayments, with a 12-month interest and payment free period.

There’s no doubt that CBILS loans have been a huge help to businesses, and with the scheme closing to new applicants on 31 March 2021, many are nearing the end of the interest and payment free period that was offered.

So, what can companies do next to optimise their cash flow? There are lots of funding options available and what is right for one business may not be a perfect fit for another. Some may look at refinancing and others may consider extending their borrowing through additional loans (it should be noted, however, that securing a loan at a lower interest rate than the CBILS loan itself, could be difficult).

If like many businesses, adding more loans to improve cash flow feels like a risk, there is another way.

Hydr can help businesses without the need of taking on new debt. Using our proprietary digital platform, businesses can leverage the assets already on their balance sheet, by accessing the cash tied up in invoices that have been issued but have yet to be paid. This is done by invoice financing.

If your business is being stifled by long payment terms or overdue invoices, invoice finance can be an extremely beneficial way to improve your cash flow quickly without the worry of additional loans. Our technology gives you the power to access your money tied up in invoices within 24 hours. Furthermore, with Hydr, this is for a fee that is fixed and transparent – absolutely no hidden extras

One of the biggest SME killers is poor cash flow.  Too many companies go bust being owed money by other businesses through invoices that have yet to be paid. 

Hydr is reinventing invoice finance.

We do this by paying 100% of the value of invoices within 24 hours (rather than the more standard 70-90% with the balance down the line) minus a fair, fixed and transparent fee. We’ve digitised and simplified the application and onboarding process (as we know your time is precious) which takes only around 15 minutes. Our class-leading integration with Xero means that we give funding decisions in real-time, giving you access to your hard-earned cash almost immediately, with full transparency on what the fee will be. 

Now that we are returning to business as almost normal, companies cannot afford to fail due to poor cash flow. If you’re ready to discover how invoice financing can work for you – book a demo today or check out our pricing calculator here.

*https://www.gov.uk/government/collections/hm-treasury-coronavirus-covid-19-business-loan-scheme-statistics#history