LONDON—Western Union has been accredited as a new lender in the U.K. under the Coronavirus Business Interruption Loan Scheme (CBILS).
Following approval by the British Business Bank, Western Union Business Solutions has put in place the operations required to start lending under CBILS and can start receiving applications from existing clients beginning Aug. 19, 2020, who meet eligibility requirements, Business Wire reported.
Delivered through British Business Bank accredited lenders, CBILS is designed to support the continued provision of finance to U.K. smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities from £50,001 up to £5 million to smaller businesses across the U.K. who are experiencing lost or deferred revenues, leading to disruptions to their cashflow, Business Wire said.
“We are very aware of the impact that the COVID-19 pandemic has had on small businesses. The CBIL Scheme allows us to play our part in helping this crucial section of the economy to recover,” said David Prendeville, head of U.K. FX sales at Western Union Business Solutions. “We are keen to make our services and experience available to smaller organizations through this new product as they steer through these challenging times while retaining employees and sustaining business.”
Relationships With 7,000 Businesses
Western Union has relationships with more than 7,000 small businesses across a variety of industries in the U.K., offering cross-border, cross-currency money transfers and payment services.
Western Union Business Solutions, acting through Western Union International Bank GmbH, will allow term loans to existing customers at competitive interest rates under CBILS, according to the report.
Existing clients based in the U.K. and with an annual turnover of up to £45 million can apply for loans for amounts exceeding £50,000. Those specific CBILS loans will be supported by a government backing of 80% in case the borrower defaults or becomes insolvent (although the borrower will always be responsible for 100% of the loan).
To be eligible, borrowers must show that their business would be viable were it not for the pandemic and has been adversely impacted by the coronavirus. Some sectors are excluded such as banks, insurers and reinsurers (but not insurance brokers); public-sector bodies and state-funded primary and secondary schools, Business Wire added.