Chirag Shah: CBILS has “undoubtedly been a success”
The Coronavirus Business Interruption Loan Scheme (CBILS) has “undoubtedly been a success”, according to Chirag Shah, chief executive of Nucleus Commercial Finance.
With the scheme set to end on 31 March, the finance industry, supported by the government, has collectively lent £22bn to UK small to medium enterprises (SMEs).
Shah believes that, ultimately, this has provided crucial financial support when businesses most needed it.
Despite this, Shah said that many businesses are highly levered, and once things start to open up again, it is likely some SMEs will struggle to repay debt and manage creditors.
He said: “At Nucleus Commercial Finance, we have lent over £180m and counting to date through CBILS, and we have capital ready and waiting to continue funding businesses until the scheme’s end.”
Shah added that Nucleus’ experience of CBILS has highlighted the additional finance that businesses require, and the funding gap it will leave once the scheme ends.
Shah said: “This has driven us to launch Business Growth Loans, which will allow us to continue providing the vital financial support businesses need to survive and recover from the pandemic.”