A Worcestershire contractor has secured a funding boost to relieve its cash flow situation after several projects were delayed due to the coronavirus pandemic.
Britannia Site Solutions has received a funding boost via CBILS after it suspended work on all construction sites until the end of the April to protect the safety of the company’s staff and sub-contractors.
The company accessed CBILS funding from alternative lender BCRS Business Loans, which is offering loans from £10,000 to £150,000 to support businesses in the West Midlands that have been affected by the coronavirus.
The Coronavirus Business Interruption Loan Scheme, delivered through 40+ British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak.
The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.
As part of the CBIL scheme, the Government makes an initial Business Interruption Payment to delivery partner BCRS Business Loans to cover interest and lender-levied fees for the first twelve months, so businesses benefit from no upfront costs and lower initial repayments. Plus, no personal guarantees are required on CBILS loans delivered by BCRS Business Loans.
Mark Wallace, Managing Director at Britannia Site Solutions, said:“Britannia Site Solutions is an innovative and creative roofing and cladding sub-contractor offering superior quality products that deliver sustainable best value technical solutions. We have worked on a number of major projects, including the Aerospace Technology Centre in Nottingham, Malvern Science Park and ASDAs right across the country, to name just a few.
“Securing funding from CBILS was an essential step in managing our cashflow position during this unprecedented pause in trading activity. Protecting our staff and sub-contractors was of upmost importance, which is why we halted work on all of our construction sites until the end of April. We have utilised the Government’s Job Retention Scheme to help us safeguard jobs during this time.
“We have three major projects worth £11 million lined up to start as soon as it is safe to do so, which will see our business and cashflow return to normal.
Stephen Deakin, Chief Executive at BCRS Business Loans, said: “We are delighted to be able to support businesses such as Britannia Site Solutions that have inevitably been affected by the coronavirus crisis. Small businesses are the backbone of our economy, so it is essential that we do all we can at BCRS to provide SMEs with the funding they need to manage cash flow and safeguard jobs. We believe that no viable businesses in the West Midlands should go unsupported.”
This deal has been co-funded by the Community Investment Enterprise Facility (CIEF), which is managed by Social Investment Scotland.
Alastair Davis, CEO of Social Investment Scotland, said: “It has been great to see how quickly organisations like BCRS have responded to the needs of organisations using the new CBILS loan scheme, and at Social Investment Scotland we are delighted to see organisations like Britannia Site Solutions receiving support, protecting local jobs in the organisation and through their supply chain.”
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).