MotoNovo Finance will now be providing additional support to its dealers as an accredited ‘Introducer’ for the Aldermore Coronavirus Business Interruption Loan Scheme (CBILS).
By doing so, MotoNovo hopes to provide a new funding avenue to more than 2,000 dealers and 17,000 corporate customers that the business estimates are facing short to mid-term cash flow challenges.
“Dealers and their corporate customers are emerging into a new trading environment that has and will continue to see significant structural change,” said Luke Curtis, MotoNovo’s head of motor – commercial finance. “Many will be seeking more routes to access capital, having seen their cashflow interrupted and will be looking to invest in the development of their business models. As an accredited CBILS introducer of our parent Aldermore Bank we can help now.”
The Coronavirus Business Interruption Loan Scheme is designed to provide financial support to SMEs across the UK that have lost revenue as a result of the Covid-19 outbreak. MotoNovo is now able to offer an introduction between eligible dealers and Aldermore to discuss CBILS loans (HP and finance lease) of between £50k-£250k available.
While borrowers remain fully liable for the debt, no personal guarantees are required for facilities below £250K. The Government is guaranteeing CBILS in an approach designed to encourage lending; something that MotoNovo hope will provide confidence to dealers to apply and invest in capital items such as transporters to support the trend towards distance-selling or for re-financing existing assets.
Curtis concluded: “This is not a soft launch; we have developed a wide-ranging campaign to reach out to our dealer community and ensure they are aware of our CBILS opportunity. At the same time, our commercial team will be contacting our commercial customers. We recognise the need for dealers to reinvent their business model for the new operating environment; CBILS can help many of them to start making this move.”