United Trust Bank launches asset refinance and acquisition CBILS products for SMEs

United Trust Bank has launched a range of Coronavirus Business Interruption Loan Scheme (CBILS) facilities designed to assist a wide range of SMEs which have been adversely impacted by the Coronavirus pandemic. CBILS facilities are available for the refinance of existing assets and the acquisition of new and pre-owned assets via Hire Purchase and Finance Lease facilities.

CBILS, delivered through British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak.

UTB gained accreditation by the British Business Bank as a lender for the Government backed Coronavirus Business Interruption Loan Scheme (CBILS) on 17th June 2020 and successfully launched a range of CBILS facilities designed specifically to assist SME house builders, developers and investors.

The CBILS scheme provides United Trust Bank via the BBB, with a government-backed guarantee enabling UTB to offer CBILS Refinance, Hire Purchase and Finance Lease facilities from 50,001 to £250,000 to new and existing customers, subject to eligibility. With a CBILS loan, the borrower may obtain the benefit of a Business Interruption Payment from the Government/BBB covering the first 12 month’s interest on the CBILS facility and the costs incurred in setting up the loan such as documentation and administration fees.

Further details of UTB’s asset finance and property CBILS products can be found on UTB’s website here: https://www.utbank.co.uk/lending/cbils/

Key features of United Trust Bank’s new asset finance CBILS facilities are:

  • Available for Refinance (Sale & HP/Leaseback), Hire Purchase and Finance Lease
  • Non-regulated facilities only
  • Facilities available from £50,001 to £250,000
  • Repayment terms from 2-5 years
  • Transactions with smaller deposits considered
  • No aged asset restrictions

Assets financed and refinanced by UTB include:

  • Cars, including high performance and classic
  • Bus & coach
  • Heavy & light commercials and trailers
  • Construction plant & equipment
  • Agricultural plant & machinery
  • Municipal vehicles
  • Waste recycling equipment
  • Engineering equipment
  • Media equipment

In the absence of the CBILS, the SMEs for whom these facilities are designed would ordinarily have difficulty raising such finance due to the impacts of Covid-19 as they may fall outside of UTB’s and other funders’ normal credit risk lending appetite. With all products the borrower remains responsible for the repayment of the full value of any facility supported by CBILS.

Upon launching UTB’s CIBILS products, Martin Nixon, Head of Asset Finance – United Trust Bank, commented:

“Many SMEs are trying to manage the consequences of the Covid-19 pandemic and the full impact on those businesses may not be known for some time. Lost and deferred revenue is making it difficult for businesses to access funds for investment and growth and many are struggling to maintain short term cash-flow.

“These new UTB CBILS facilities can help businesses to acquire a range of assets from coaches to construction plant and to refinance their existing vehicles and machinery to release capital back into their bank accounts and improve their liquidity.

“United Trust Bank is an experienced through the cycle lender and we understand the pressures and challenges facing SMEs affected by the Covid-19 pandemic. By working with the BBB we have developed a suite of CBILS asset backed facilities to help them through these difficult times. SMEs are the backbone of the UK economy and United Trust Bank will continue to support them through this crisis.”