Firms facing a liquidity crunch will not have to pay any interest or fees for the first year. Lenders benefit from an 80pc government guarantee, meaning the taxpayer will step in to cover most of the shortfall if a borrower fails to repay.
The scheme’s attractions will be worth nothing if companies cannot access cash quickly enough. Banks have been panned for not processing loans more quickly. Fintechs, on the other hand, argue that their streamlined processes allow them to approve lending more swiftly.
Starling Bank, another UK-based digital lender approved for CBILS lending last weekend, says it is aiming