Nearly a fifth of all small and medium-sized businesses in the UK are unlikely to get the cash they need to survive the next four weeks, in spite of unprecedented government support.
The promise from the chancellor was that"any good business in financial difficulty who needs access to cash to pay their rent, the salaries of their employees, pay suppliers, or purchase stock, will be able to access a government-backed loan, on attractive terms". "I was heartened and astonished to see the unprecedented help that was announced by the government two weeks ago," he said."But we put one of our most senior people on it and as each day passed it was disappointment after disappointment."
"It seems to be that if you are lucky you are banking with the right party, if you're not lucky you'll end up having to close your business."Another business owner, Peter Jackson - who runs jewellery shops employing 40 people across the north-west of England - said his bank decided he was ineligible because the firm made a small loss in 2019. But Mr Jackson said his business was viable before the shutdown and expected to make a profit this year. It also owns valuable stock.
After analysing the government help on offer, those accountants say that 18% of their clients were unlikely to get access to the cash they will need to survive a four-week lockdown.The findings echo similar reports from other business groups, estimating that up to a fifth of businesses could close if the lockdown lasts a month or more.
Bodes well for Brexit, doesn’t it!
Interestingly on the latest radio 4 news a few minutes ago the BBC said 'may run out of cash' So is it will or may? Just asking
No shock there. Grants cannot even be accessed by SME's who do not have a rateable property. So if you have a business, work from a shared office space like 1000's of businesses do, you are basically hung out to dry.
'Many firms have told the BBC that banks have refused them emergency loans' Absolute ballbags. Remember this when we're being asked to bail them out again in a few months. Remember who suffered most through this virus and who they expect to suffer most in the aftermath. covid19
This is no shock. It’s easy for Sunak to stand up and make promises; to just say what people want to hear. But there is no process to fulfil them. This is bad but when people don’t get their promises “80%” of wages at the end of the month it will be worse. Populism exposed.
Just hearing that some premier league footballers are taking a pay cut so they’ll only be getting £3,000 A WEEK. Parasites. And the clubs are also claiming public funds for furloughed staff. Let’s all boo from our front doors at 8pm tonight.
Westminster failing again. Bbc should be calling them out instead af agreeing with them all the time.
I simply cannot wait for brexit to make things better on the back of this.
No sh*t .......
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I have written to our Landlords and requested to pay monthly in advance rather than quarterly in advance to help our cash flow at this difficult time. Several have objected and demanded payment in full. The cognitive dissonance is staggering.
But responsibility for others has to be reasonable – you can’t ask an entire generation to sacrifice itself financially and potentially even physically. That’s not mutual responsibility, it’s national suicide.
Shut everything. There will be nothing left to return to. So vigorously opposing to any form of moving around? The only businesses which survive, will be the ones of the size of the Amazon. 'Non essentials', will be gone by summer. And with them, your jobs. Millions of them.
All part of the Marxist's plan. No place for small businesses in this brave new world.
After this CCPVirus is over, I see and hope for a much stronger Britain (UK). Can you create a litigation to recover for damages to a country?
By the way, I don’t work for a bank or have any loyalty to banks generally. But I do know how EFG (now CBILS) work and I can spot Government spin when I see it. Lobby the Government not the banks!
The Government’s 80% guarantee is a nice headline but in reality it only applies after a bank has taken all possible steps to recover a defaulting loan and each lender has a portfolio cap on the amount they can claim overall which is significantly less than 80%
It takes time for Banks to change their lending systems for the new government schemes. No doubt the system updates will be implemented as soon as the have been fully tested.
Stay at home !
The Government has not created a new scheme to support businesses nor supplied any cash to fund it. They have simply renamed the long-standing EFG scheme. Banks are bound to follow the rules of that scheme in order for the government guarantee to apply.
banks being sharks again no surprise there dickturpinworeamask
This is absolutely spot on, the banks are making it harder than ever to get funding, asking for guarantees and giving poor interest terms, defeating the purpose of the scheme. Sad that they put commercial interest first, may need the government to intervene again!
More doom and gloom from the BBC.
Uk small businesses
Everyone is going to run out of anything. This pandemic was created in order to crash current economic system and introduce digital currency. Are you looking forward being poor? Brace yourself and bluntly believe everything you hear
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