The Covid-19 pandemic has caused much uncertainty for the future of many businesses across the globe. Businesses up and down...
There is no doubt that the Covid-19 pandemic has turned the world upside down, not least the business world. We recently wrote an article on how we can help you support you during the pandemic, but what about wider support? In this post, we answer the question of what financial support is available to business during the Covid-19 crisis?
What financial support can your business get?
It was recently announced that a fifth of UK businesses is at risk of collapsing due to the global pandemic. With this in mind, the Government has been forced to review its strategy for supporting businesses through these turbulent times, especially SME’s.
TheChancellor Rishi Sunak announced that businesses could access government-backed emergency loans of up to £5m to keep them solvent during the crisis. However, there seems to be a slight disparity between his words and the actions of the banks. While the Government schemes initially gave hope to struggling businesses throughout the nation, a number of businesses have since been refused emergency loans due to their financial performance, while others have been turned down for the amount of money they have in the bank.
The Coronavirus Business Interruption Scheme
A number of businesses have been approved for the Government-backed loan scheme, The Coronavirus Business Interruption Scheme. However, the main concern for these businesses is that they can’t yet access these funds. Many businesses may fear that they will become insolvent before this money is available.
Furthermore, the scheme isn’t guaranteed to all businesses. HMRC have confirmed that they will contact the business applicants that are considered eligible for the scheme, and they will then be invited to apply via their online platform.
For larger businesses, there is also the COVID-19 Corporate Financing Facility (CCFF). The CCFF will provide funding to larger businesses and companies. This will support their cash flow issues by helping them to pay wages and suppliers due to the disruption caused by COVID-19.
Besides the Government, who else is helping?
A number of retail banks have confirmed that they are now offering the asset finance variant of the Coronavirus Business Interruption Scheme to SMEs.
Access to finance is only one of the issues you may have to work through, but it is important to consider any funding requirements early on.
At Lines Henry, we’re here to help. If you’re worried about the impact of Covid-19 on your business, why not contact us – we offer a free consultation as to the best way forward in the current climate. While there is a lot of uncertainty at the moment, we’re the experts when it comes to financial support and we’re well informed to give you the best and most up to date advice.
Speak to us, we can help.