The Coronavirus Business Interruption Loan scheme is a six year loan, with the first year interest free, and the other five years capital and interest repayments.

However, the banks are calculating affordability over five years, and not six.

As a bottom line, if a business was deemed “lendable” last year, then they should be deemed “lendable” this year.

Cashflows will be required – preferably a 12 month cashflow forecast.

If you are going to apply for a large loan, then the banks will require more tricky cashflows.

If you are claiming for loans under £250k, the cashflows do not have to be too complicated.