Region: West Midlands
Location: West Bromwich
Programme: Coronavirus Business Interruption Loan Scheme
Restrictions on travel due to COVID-19 meant this specialist machinery installation firm was unable to visit client sites and carry out its work. Forecasting a severe disruption to its cashflow, VIG2019 sought support via the Coronavirus Business Interruption Loan Scheme (CBILS).
Read what the business had to say in this CBILS case study.
British Business Bank: Can you tell us what your company does?
Mark Andrews, director of VIG2019: We specialise in dismantling, transporting and reinstalling highly technical machinery and equipment, and we undertake projects both in the UK and internationally.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply for CBILS support?
Coronavirus had a severe impact on our usual operations as it limited our travel and prevented us from visiting clients’ premises. Although many customers postponed rather than cancelled the work we had planned, the scenario planning and active forecasts we carried out highlighted that we were going to see a disruption to our cashflow.
We applied for a CBILS term loan to cover a three-month shutdown.
How long did the application process take? Did you need any support?
The process was straightforward to complete. We worked with Close Brothers, who helped facilitate our application. As a result, our request for funds was turned around quickly, with the loan being deposited in our account five days after our conversations began.
The CBILS loan has given us some breathing space. Without it, we couldn’t pay rent on our premises or cover our overheads. Receiving the funding means we can hope for a successful outcome post-coronavirus.
Mark Andrews, director of VlG2019
What advice would you give to other businesses that are applying for a CBILS loan?
Work in collaboration with your lender, as, in our experience, this made for a simple application process. Talking to Close Brothers at an early stage about what we needed helped make sure that the loan we sought was right for filling the gap in working capital we’d identified as a problem for our business.
How has the CBILS loan helped your business to weather the outbreak? And what might have happened if you hadn’t received it?
The business interruption loan will help us to limit the impact of the working capital gap that we’ve forecast. It’s given us some breathing space and we’re now hopeful that we’ll achieve a successful outcome once the pandemic has passed.
Without the funds, we wouldn’t be able to pay rent on two business premises or cover important overheads, such as those that pertain to the high-level technology we use as part of our work.