21% of CBILS Applications have been accepted so far
With the news from the UK Finance Study that only 21% of CBILS applications have been approved so far, we take a quick look at what this means. This statistic sits alongside the British Chamber of Commerce study that suggested just 2% of applications have been processed thus far.
In a recent Money Facts study there was 32 active CBILS accredited lenders. 12 of those restrict CBILS to existing customers only. This leaves 20 active lenders of which are 14 regional lenders, so if the business is not in one of these areas, this leaves just seven active lenders available to a business. There are then three high street lenders however, if the business does not meet their credit requirements, then the business will have a choice of just three remaining lenders. With this in mind it is easy to see how few options some SMEs have when it comes to CBILS.
One of the key bottlenecks in the application process has been attributed to the speed in which banks are responding to information sent, having been overwhelmed by the volume of applications that have been sent. As banks try to move more towards automation, this may give them new impetus.
On a positive note the banks processed double the amount of loans than the previous week, A total of 6,020 loans worth £1.1b. It marks a 150% rise in the total amount lent to small and medium-sized businesses – worth an additional £700m. This followed news that RBS had approved 70% of CBILS applications it had reviewed (although it is noted that they are the only high street bank accepting CBILS loans below £25,000). Hopefully this upward trajectory continues.