Businesses could face major refinancing problems in the latter half of 2022 if the recovery loan scheme (RLS) is not extended beyond the summer and banks continue to refuse to transfer outstanding CBILS when companies refinance, according to Azets.
Murdoch MacLennan, banking partner with Azets, is calling upon the government and British business bank to extend the RLS further to the end of 2022 and to insist that lenders accept CBILS transferred under the RLS scheme. RLS is scheduled to end on 30 June 2022 whilst the CBILS scheme ceased in March 2021. He said: ‘Businesses funding requirements can change quickly, and lenders appetite for risk and funding strategies also change, so the market for refinancing needs to be as accessible as possible. The CBILS and RLS schemes helped protect countless businesses and jobs, but there is a risk that these rigid rules could start creating extensive problems for those same businesses saved by the schemes.’
Businesses could face major refinancing problems in the latter half of 2022 if the recovery loan scheme (RLS) is not extended beyond the summer and banks continue to refuse to transfer outstanding CBILS when companies refinance, according to Azets.
Murdoch MacLennan, banking partner with Azets, is calling upon the government and British business bank to extend the RLS further to the end of 2022 and to insist that lenders accept CBILS transferred under the RLS scheme. RLS is scheduled to end on 30 June 2022 whilst the CBILS scheme ceased in March 2021. He said: ‘Businesses funding requirements can change quickly, and lenders appetite for risk and funding strategies also change, so the market for refinancing needs to be as accessible as possible. The CBILS and RLS schemes helped protect countless businesses and jobs, but there is a risk that these rigid rules could start creating extensive problems for those same businesses saved by the schemes.’
