Mercedes-Benz Financial Services (MBFS) has become the first car manufacturer finance house to be approved as a fully-accredited Coronavirus Large Business Interruption Loan Scheme (CLBILS) lender.
The COVID-19 prompted lending scheme, which is managed by the British Business Bank, now lists the German premium carmaker’s finance house among 22 CBILS loan providers.
A statement issued by MBFS stated: “Mercedes-Benz Finance has been accredited to provide franchised Mercedes-Benz Retailers and Dealers with a loan under this scheme.”
During the period since the CLBILS loan scheme’s launch to June 26, it has loaned £3.10 billion.
CLBILS provides finance to mid-sized and larger UK businesses with a group turnover of more than £45m that are suffering disruption to their cashflow due to lost or deferred revenues during the COVID-19 outbreak.
Following HM Treasury’s announcement on 19 May, the CLBILS scheme’s maximum loan amount was increased from £50m to £200m.
Many car retail businesses have told AM that they have chosen not to take a Government loan due to its repayment terms and the availability – where required – of cheap finance from other sources.
The inclusion of an OEM finance house to the list of approved lenders may sway certain businesses, however.
Commenting on MBFS inclusion as a lender to the scheme, Greg Taylor, the head of MHA MacIntyre Hudson Financial Solutions, said: “It will be very interesting to see if any other Financial Services arms of manufacturers follow suit.”