This blog talks about the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The government backed British Business Bank (BBB) estimates that a staggering 5% to 20% of the large businesses who have borrowed under CLBILS could default on their debt. Less surprisingly, it thinks 10% to 25% of the smaller CBILS borrowers and 35% to 60% of Bounce Back borrowers will become unable to pay back their debt.
The greater concern is that public law enforcement agencies do not have sufficient resources to manage the flow of new cases. Insolvency Practitioners (IPs) are one group that have been unable to access support from law enforcement. IPs have attempted to make reports to the criminal enforcement division of the Insolvency Service, only to be told that it is overwhelmed and has no resources to assist. IPs and financial institutions are now looking for a realistic option to address the criminality they uncover, and some are considering pursuing private prosecutions in an effort to mount a credible deterrent to the offending. Some of the benefits cited are:
Directors should take these steps to protect themselves:
Our expert team is here to help you with any enquiry you have on CBILS and CLBILS at email@example.com.
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