MotoNovo announces business loan support for dealers

MOTONOVO Finance is offering support to dealers facing short to mid-term cash flow challenges as a result of the Covid-19 pandemic.

It will provide a new funding avenue to more than 2000 dealers and 17,000 corporate customers as an accredited ‘Introducer’ for the Aldermore Coronavirus Business Interruption Loan Scheme (CBILS).

Luke Curtis, MotoNovo’s Head of Motor – Commercial Finance, said: “Dealers and their corporate customers are emerging into a new trading environment that has and will continue to see significant structural change.

“Many will be seeking more routes to access capital, having seen their cashflow interrupted and will be looking to invest in the development of their business models. As an accredited CBILS introducer of our parent Aldermore Bank we can now help.”

The Coronavirus Business Interruption Loan Scheme is designed to provide financial support to SMEs across the UK that have lost revenue, having seen their cashflow disrupted, as a result of the COVID-19 outbreak.

MotoNovo is now able to offer an introduction between eligible dealers and Aldermore to discuss CBILS loans (HP and finance lease) of between £50k-£250k available.

It is a lending range that can help many of MotoNovo’s dealers, while making it accessible to commercial customers will assist them in sustaining their businesses, helping them to invest and keeping them in the market for future vehicles.

While borrowers remain fully liable for the debt, no personal guarantees are required for facilities below £250K.

The Government is guaranteeing CBILS in an approach designed to encourage lending; something that MotoNovo hope will provide confidence to dealers to apply and invest in capital items such as transporters to support the trend towards distance-selling or for re-financing existing assets.

Curtis said; “This is not a soft launch; we have developed a wide-ranging campaign to reach out to our dealer community and ensure they are aware of our CBILS opportunity.

“At the same time, our commercial team will be contacting our commercial customers. We recognise the need for dealers to reinvent their business model for the new operating environment; CBILS can help many of them to start making this move.”