Of course, businesses that are having to close doors and stop trading have been hit the hardest, and they have been helped by the UK government. Chancellor of the Exchequer Rishi Sunak has been at the centre of this crisis, at least within the UK government, with the MP announcing unprecedented measures he had come up with to try to improve the economic situation and help out small businesses and workers across the nation.
Sunak’s budget, while not being able to help every single business and individual, has received general acclaim for going above and beyond in terms of assisting the economy, and businesses. However, in spite of this, there have still been claims that the measures are not going to be enough, and a lot of companies are set to endure a lot more hardship to come over the next few months.
Indeed, it has been revealed that 1 in 5 small businesses in the UK face real problems over the next few weeks with getting the cash they need. This comes despite the unprecedented government help, and there is a good chance that many of these companies could end up folding or going into administration.
Research seems to suggest that anywhere between 800,000 and 1 million firms across the UK could close within the next month, and this could have huge ramifications on the economy and unemployment, which has been at its lowest level in years. Banks are believed to have been refusing emergency loans to many of these companies, which is perhaps understandable, and many find themselves in real trouble.
There are some companies that are still able to function, with employees working from home, and the businesses making use of the government’s furlough system. However, some companies have been unable to do any kind of business since non-essential businesses were closed by the Prime Minister.
The Chancellor pledged that small businesses would be helped by Coronavirus Business Interruption Loans (CBILs) of up to £5 million. However, a lot of companies have stated that they are unable to get through to banks, and when they do, they are being rejected or told they are ineligible for these loans.
London Mayor Sadiq Khan told BBC Radio 5 Live that banks need to step up during this crisis and help out the small and medium-sized businesses. Some business owners have expressed frustration at the process taking a long time, while others have claimed that the business loans will not be enough to stop the businesses from going under.
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For some businesses, the Coronavirus Business Interruption Loan Scheme (CBILS) might not be suitable, or could take too long to be administered. At Century Business Finance, we work with alternative lenders who can offer business finance at competitive rates and potentially have the funds in your account the same day.
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