APPROVED: PPN UK SECURE FIRST CBILS FINANCE SUPPORT
Property Entrepreneur of the PPN UK Group secures one of the country’s first Corona Business Loans
Property Entrepreneur Daniel Hill from one of the UK’s leading and award-winning property groups PPN UK has this week become one of the first in the country to secure government finance support via the recently launched Corona Business Loan Interruption Scheme (CBILS).
The impressive CBILS initiative was announced by the Chancellor in the Spring Budget on 11th March however as of Tuesday 14th April, almost a month later, only 1% of businesses have been able to access this vital funding.
Supported by government guarantees, favourable terms, low rates, a year interest-free and up to 12 months capital repayment holiday, CBILS, part of the governments £330 billion rescue package, provides the vital security and finance businesses require to maintain trade, operation and performance during this high impact period.
So why have 99% of businesses been unable to secure this crucial funding, whilst PPN UK have already secured not one, but three of these government loans?
Property Entrepreneur and Managing Director of the PPN UK Group, Daniel Hill provides some insight.
‘Firstly apologies I’ve been off social media etc for the last month or so. We had to make a highly strategic decision early on whether we were to support our audience in the open market or our 100 Property Entrepreneur clients with their businesses behind the scenes. Due to the pace everything was progressing we needed to commit to get off the grid and commit to delivering the latter.
Over the last 4 weeks we have been working tirelessly behind the scenes to analyse what is happening in a bid to forecast several steps ahead with what is likely to take place. This visibility has enabled us to be highly strategic and execute every initiative available in real-time to achieve the desired and required results with the success of CBILS finance being one.
Success and failure are both very predictable and whilst the current rules are being written (and rewritten!) on an almost daily basis, mastering the market and knowing how to play the game has never been more critical.
With CBILS specifically, the sheer demand for this initiative against the capacity we forecast would be available to supply it, we knew the speed of implementation was going to be key. Between my Finance Director, Finance Team and myself, we read every piece of information available ahead of time so the moment the scheme opened on 23rd March (3 weeks ago) we were able to submit our application immediately.
Whilst being top of the pile was vital, our expectation as this is moving so fast was that we would need to ‘do the dance’ with the banks whilst they lifted their barriers and we would need to await the required government pressure and policy revisions to open things up.
This was exactly how it played out in practice however during this period (and 8 failed applications!) we were able to master in real-time the rules to the game and ascertain what boxes the bank needed to tick to get their criteria and government security rubber-stamped. Once their understanding of the scheme was formalised and applications framework dropped into place, we were first out the traps with funding secured using the application model we had refined over 4 weeks, within 48 hours.
We own over 20 different companies under PPN UK and having split tested which ones met the various criteria (which is likely to change in due course as with all emerging schemes and policy), we have now formally secured our first 3 CBILS loans with 6 figures of finance due to arrive in our bank within the next 2 weeks. We will now revisit some of our other companies with the blueprint that worked and likely roll funding over to the others where needed using the same process.
The rates and terms of these first three loans granted are 6 years, interest-free and capital repayment free for the first 12 months. All fees covered by the government and an interest rate of below 3% which is just remarkable.
Well before the Job Retention Scheme/Furlough was announced we committed to all PPN UK Team Members across all companies we would invest the money required to retain their workload, employment and operation despite the impact we were likely to experience from the market and economy. The CBILS scheme now provides businesses like ours with the vital revenue replacement required to do this without having any long term impact on our working capital and financial performance.
Whilst much of the surrounding press has been negative toward the government and how they are dealing with the current situation, from my seat and commercial perspective as an entrepreneur, investor and employer I am very fortunate we operate and live in the UK. All things considered, I think the decisions that are being made and the economic support that is being provided by the government is exceptional. Granted, however, you do need to put in the effort and heavy lifting required making it work and be on top of your game but that’s nothing new in the world of business.
5 weeks ago I said to our 100 Property Entrepreneurs who we are guiding through this period that in 12 months, every business in the UK will have a line on their P&L that says ‘COVID-19 Debt Repayment’ or similar and my sentiment stands. When things are great, they go bad. When things go bad, they come great. We’re all in this together and you just need to act accordingly and play the long game.
For those who can make good use of the phenomenal finance opportunity that is being made available under CBILS, I would recommend moving on this now. Once the economic flywheel is back in motion, you won’t see an opportunity like this again anytime soon. Your speed of implementation is key here and I would suggest, whatever it takes, you work your way to the top of the pile before April 25th as I wouldn’t be surprised if we see the tables start to turn after this date and the first-mover advantage start to disappear.
If you’re going to have a debt repayment line on your P&L, I know I would much rather it be under the incredible terms and rates of CBILS than to HMRC, creditors or repaying private finance.
Success and Failure are both very predictable – Let this be the making, not the breaking of you.
Very best of luck’.
For a copy of the 1-page model, strategy and supporting documents Daniel Hill and the PPN UK Group used to successfully secure their CBILS Funding please click here
This is provided completely free of charge and we wish you the very best of luck securing your CBILS finance to protect the future of your businesses through this challenging period.
Success and Failure are both very Predictable.