Johan Groothaert

Fiduciam attracts £430m of CBILS loan requests since accreditation

Fiduciam has announced it has received over £430m of CBILS loan requests since it became an accredited lender in July.

The number of requests increased towards the end of last month, close to the original deadline of 30th September.

The institutionally-funded short-term lender is expecting to get at least another £200m of requests for CBILS loans between now and the new deadline announced by Rishi Sunak (30th November).

Fiduciam had received applications from a variety of businesses, including hotels, housebuilders, automotive firms, and others.

A recent loan to be approved is a £840,000 facility to a children’s nursery in north-east London. 

The business was forced to close due to the lockdown, while still having to meet debt service payments of £113,000 per annum.

Despite only operating for four months, the nursery qualified for the CBILS loan, as it met the requirement of being a viable business before the outbreak of the pandemic, and one that is expected to do very well in a more normal trading environment.

Fiduciam provided a two-year CBILS loan, which decreased the debt servicing cost of the nursery by 64% for the next two years.

Johan Groothaert, CEO at Fiduciam (pictured above), commented: “There has been an increase in applications the closer we got to the 30th September deadline, so the extension of CBILS to 30th November was both welcome and necessary, with many businesses still facing financial difficulties.  

“As a result, we have reallocated a substantial amount of our resources to handle the CBILS application volumes.”

He added that it was encouraging to see that most of the loan requests were of good quality.  

“Many SMEs remain cash strapped, while their business fundamentals are very strong.  

“While central bank initiatives typically do not reach the SME segment, CBILS does, providing these businesses with an opportunity to weather the crisis.”

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