1pm set to expand lending to SMEs as it is named CBILS lending partner

Covid-19 News | Financial Services | National
Ian Smith – 1pm

1pm plc, the AIM-listed independent specialist provider of finance facilities to UK SMEs, through its wholly-owned subsidiary, Onepm Finance, is pleased to announce that it has been approved for accreditation as a lending partner under the Government’s Coronavirus Business Interruption Loan Scheme (CBILS). The British Business Bank administers CBILS.

Becoming an accredited lender will enable 1pm to expand its lending to help not only its existing 20,000 small business customers but support any qualifying SME under the scheme. SMEs with an annual turnover of up to £45m can apply for a 1pm CBILS term loan.

1pm expects that this will make a significant impact on the number of new lending agreements it can approve. 1pm are now putting in place the processes required to start lending under the scheme and will confirm shortly the date in May when it will be ready to start receiving CBILS applications.

The CBILS provides government-backed loans of up to £5m. Under the scheme the government underwrites 80% of the outstanding value of the loan. The benefits of the scheme for SMEs include no upfront costs, no interest payments for the first 12 months, lower initial repayments and no personal guarantees are required.

The CBILS accreditation provides an additional means for 1pm to deliver support to SMEs. Since the beginning of the crisis, 1pm has been working hard to help its customers during this turbulent period through its different lending activities, including Asset Finance, Loan Finance and Invoice Finance. 1pm has been helping impacted customers by providing tailored support on a case by case basis, including restructuring payments.

1pm has also developed new products to help businesses that need to provide services during the lockdown. For example, the Group has launched Low Start to finance vital equipment SMEs might need. Low Start has been designed to help SMEs manage the costs of investments in smaller business assets during this challenging period.

The initiative allows business owners to obtain a lower starting option on their lease, making significantly smaller payments at the beginning of their agreement, for either three or six months. Low Start has been initially launched to 1pm’s exclusive panel of asset finance brokers to support their customer and dealer networks throughout the UK. Further details can be found here

Ian Smith, CEO, 1pm said: “Any future economic recovery is going to be dependent on getting Britain’s millions of small businesses back on their feet as quickly as possible. We are thrilled that the British Business Bank has approved us becoming a lending partner for CBILS. Since the crisis began our team has been working hard to assist any customers that need support.  The ability to offer funds through CBILS greatly expands the support we can provide SMEs. We are looking forward to helping those businesses to access the cash they so urgently need.”

Keith Morgan, CEO, British Business Bank, said: “Our accredited lenders have seen an incredible demand for CBILS since the scheme became available. As a non-bank alternative finance provider, this accreditation means 1pm will be able to further support its smaller business customers and continues the British Business Bank’s long-term support of non-bank lenders to offer more diverse sources of finance.”

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