A new lending facility from the Bank of England to help support liquidity among larger firms.
The aim is to help them bridge coronavirus disruption to their cash flows through loans.
What is it?
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.
This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.
It will also support corporate finance markets overall and ease the supply of credit to all firms.
Who is it for?
All non-financial companies that meet the criteria set out on the Bank of England’s website are eligible. The key criteria are:
- UK incorporated companies or foreign incorporated businesses with a genuine presence in the UK (ie employment or headquarters) or that generate significant revenues in the UK.
- Business that can demonstrate that they were in sound financial health prior to the outbreak (ie hold short and long term satisfactory credit ratings).
How does it work?
- Successful applicants will be able to access commercial paper under the scheme, which is an unsecured short term debt instrument.
- The debt instruments will have a maturity of one week to twelve months and issued directly into Euroclear and/or Clearstream.
- The scheme is available and more information is available from the Bank of England.
What should I do next?
Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.
Published 24 March 2020
Last Updated 2 April 2020
2 April 2020
Who is it for? All non-financial companies that meet the criteria set out on the Bank of England’s website are eligible. The key criteria are:
- UK incorporated companies or foreign incorporated businesses with a genuine presence in the UK (ie employment or headquarters) or that generate significant revenues in the UK.
- Business that can demonstrate that they were in sound financial health prior to the outbreak (ie hold short and long term satisfactory credit ratings).
How does it work?
- Successful applicants will be able to access commercial paper under the scheme, which is an unsecured short term debt instrument.
- The debt instruments will have a maturity of one week to twelve months and issued directly into Euroclear and/or Clearstream.
- The scheme is available and more information is available from the Bank of England.
24 March 2020
First published.