Compass Business Finance, one of nearly 50 accredited lenders working to deliver Coronavirus Business Interruption Loan Scheme (CBILS) funding, said that businesses could potentially refinance current hire purchase or lease agreements, or unencumbered machinery via CBILS.

The finance specialist said that Sale and HP Back could be a useful addition to any other support measures firms were currently accessing.

It offers a way to release working capital, providing an increase in funding and “potentially lower repayments and 12 months interest free”, the firm said.

Director David Bunker said: “Developments within the CBIL scheme mean that many businesses who initially struggled to get support now can, via their banks for term loans and overdrafts, as well as through the asset finance and sale and HP back variants that we’re offering.”

Compass also said it would be happy to help businesses explore their options around the various elements of the CBILS scheme.

After an initial outcry involving many businesses having difficulties accessing the finance or being turned down by lenders, the situation around CBILS seems to be improving.

More than £2.8bn of lending has been provided so far according to the latest data from UK Finance, with total lending in the week ending 21 April doubling.

In excess of 36,000 completed applications have been received by lenders, with 16,624 approved as at 23 April.

It has been widely reported that HM Treasury will also announce a 100% guarantee on loans of up to £25,000 to very small businesses.

Update: on the afternoon of Monday 27 April chancellor Rishi Sunak announced the new Bounce Back Loan scheme targeted at small businesses, with loans from £2,000 to £50,000 available with no pre-conditions. Government will cover the interest bill for the first 12 months.