The Confederation of British Industry (CBI) has managed to secure emergency funding after the race to raise cash forced the scandal-hit lobby group to cancel its annual general meeting last week.
Its failed attempt to raise £3m ahead of its annual general meeting last week prompted concerns about the future of the group.
But The Sunday Times reported that the CBI has secured a revolving credit facility — a type of overdraft to use for its short-term spending needs — from a group of banks, including Natwest, HSBC, Lloyds Banking Group, and Barclays.
A spokesperson for the CBI confirmed the new funding arrangement and said it puts them in a much better position than before.
“We are satisfied that we have secured the financing necessary to overcome the short-term cash flow challenge and that the organisation remains in a strong medium to long-term position,” the spokesperson said.
Each of the banks were contacted by City A.M. for comment.
The CBI’s financial difficulties come after a number of business abandoned the group and stopped paying their membership fees after it was hit by a major scandal involving claims of sexual misconduct within the organisation.