Coronavirus Business Interruption Loan Scheme - Invoice Finance Top Up Facility

The Coronavirus Business Interruption Loan Scheme (CBILS) Invoice Finance Top Up Facility is designed to support existing HSBC UK Invoice Finance clients who have a funding need arising from the COVID-19 pandemic.

At a glance:

  • Generate additional funding from your existing HSBC Invoice Finance facility, backed by a UK Government guarantee provided to us

    Enhance funding from your gross debtor book

  • No fees are paid by you for the Government guarantee

    No facility arrangement fee or facility repayment fee should you wish to repay early

  • Available for sums from £50,001 to £5,000,000 (total amount of CBIL facilities must not exceed £5,000,0001.)

  • Discounting Margin and Service Fees as per your existing agreement with us.

  • The Government will make a Business Interruption Payment to cover the first 12 months of discounting charges and any lender-levied fees (subject to application) 2

  • The CBILS Invoice Finance Top Up Facility is for a fixed term of 3 years and must be repaid within 3 years from the date of drawdown

CBILS Invoice Finance Top Up Facility - more information

Key benefits

A UK Government guarantee can help support additional funding for your working capital needs
Financial support through the short-medium term uncertainty due to COVID-19
The CBILS Invoice Finance Top Up facility Works alongside your existing Invoice Finance facility from HSBC

Quick check CBILS Invoice Finance Top Up eligibility criteria

A CBILS Invoice Finance Top Up Facility may be available to you, if

  1. you are an existing HSBC Invoice Finance (UK) Ltd client, operating in the UK and using the funding to support business activity within the UK
  2. you generate 50% or more of your business turnover from trading activity 3
  3. you have an annual group turnover of no more than £45m
  4. you operate in a sector that is eligible for CBILS 4
  5. you have a sound funding request and are a viable applicant
  6. the top up amount you require is between £50,001 and £5,000,000
  7. you were not an ‘undertaking in difficulty’ as at 31 December 2019 5
  8. you have been approved for a Bounce Back Loan facility and you certify that the Bounce Back Loan facility will be repaid when the CBILS Invoice Finance Top Up Facility commences
  9. the purpose of the funding meets the standard criteria of the CBILS scheme
  10. you understand you are liable for 100% of the whole facility to include the top up element and HSBC Invoice Finance (UK) Ltd will always seek to recover the outstanding balance from you and the proceeds of any security you, or any security provider on your behalf, has given for the facility 6

Important Information

  • All facilities are subject to status. Terms and conditions apply
  • No personal guarantees are required in connection with additional funding under the CBILS Invoice Finance Top Up Facility of less than or equal to £250,000
  • For additional funding under the CBILS Invoice Finance Top Up Facility of greater than £250,000, we will review security requirements on an individual basis. If a personal guarantee is deemed appropriate, it will be only in an amount up to a maximum of 10% of the additional funding amount we agree with you 7
  • You are liable for 100% of the whole facility to include the top up element and HSBC Invoice Finance (UK) Ltd will always seek to recover the outstanding balance from you and the proceeds of any security you, or any security provider on your behalf, has given for the facility 8
  • The guarantee that we receive from the UK Government under the Coronavirus Business Interruption Loan Scheme (CBILS Guarantee) may give rise to a cost benefit to us. This will depend on a number of factors, including the discounting margin you currently pay, our assessment of your credit risk profile, our additional costs of providing the facility and the fees we pay to the Government in respect of the CBIL Scheme. If there is a cost benefit, we will pass this on to you by reducing the discounting margin you pay. If the impact of the factors above results in additional costs to us, these additional costs will not be passed on to you
  • As we regularly reassess and revise pricing as permitted by your agreement with us, we will always seek to pass on to you any cost benefit to us of the UK Government CBILS guarantee when calculating any changes to pricing that we apply. Please speak to your Client Director/Manager at any time for more information
  • You do not need to do anything in this respect. Calculations will be made on a monthly basis and any changes will be automatically passed on to you

Next Steps

Please speak to your HSBC Invoice Finance Client Director/Manager for more information

You can also contact us
by phone on 0800 731 8939
by email at info@invoicefinance.hsbc.co.uk

Coronavirus Business Interruption Loan Scheme - Invoice Finance Top Up Facility FAQS

General Information

Where can I get more information?

For more information on the Coronavirus Business Interruption Loan Scheme - Invoice Finance Top Up Facility from HSBC, please speak to your HSBC Invoice Finance Client Director or download the factsheet available on this web page.

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS)

The Government of the United Kingdom (including the Secretary of State) does not endorse lenders who participate in the Coronavirus Business Interruption Loan Scheme (CBILS) (the ‘Scheme’) and the provision of the Scheme should not be construed as an endorsement or a warranty of HSBC Invoice Finance (UK) Ltd plc by the Government

1 All facilities are subject to status. Terms and conditions apply

2 You can elect to receive a Business Interruption Payment (BIP) from the UK Government to cover the amount of any facility security fees for the CBILS Invoice Finance Top Up Facility and your first 12 months of discounting charge payments, this will be paid directly to HSBC by the UK Government. We will ask you about this during your application for the CBILS Invoice Finance Top Up facility. Following your acceptance of the CBILS Invoice Finance Top Up Facility we will make arrangements for any relevant Business Interruption Payments to be applied to it.

3 This eligibility criterion does not apply to applicants which are registered charities or further education colleges.

4 The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools.

5 As per Scheme rules, you were not an “undertaking in difficulty” as at 31 December 2019 as per Article 2 (18) of the Commission Regulation (EU) No 651/2014 of 17 June 2014. You can find more information about this topic on the British Business Bank web page “FAQs for SMEs” here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/cbils-faqs-for-smes

6 If HSBC Invoice Finance (UK) Ltd cannot recover all funds, the Government provides a partial guarantee

7 If you default on your facility, we will look to realise all other available collateral provided to support your facility before we make a demand on any personal guarantee. The maximum we would then seek to recover under any personal guarantee will be limited to 20% of the amount of your CBILS Invoice Finance Top Up facility that remains outstanding after the proceeds of all other available collateral have been applied. Only after this will we look to realise the government guarantee

8 If HSBC Invoice Finance (UK) Ltd cannot recover all funds, the Government provides a partial guarantee

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