Following the outbreak of the Coronavirus pandemic which has had a huge impact, both nationally and internationally, the UK Government introduced a number of financial measures to help support the economy.
Aside from offering to pay a substantial percentage of the entire working populations’ wage by way of Furlough payments and grants to the self-employed, it was deemed appropriate to introduce Bounce Back Loans for small to medium sized businesses. Businesses are able to apply for a loan between £2,000 and £50,000 based on annual turnover.
The way the scheme works is that the Government guarantees 100% of the loan and for the initial 12 months of borrowing, no repayments, interest or fees will apply. The loans are for 6 years and come with a flat interest rate of 2.5%. Only businesses established before 1st March 2020 can apply. The last date to apply for a bounce back loan is the 4th November 2020.
So far, over 1 million loans have been granted as a way to boost to the Economy. The thought process behind the loans is that it will help smaller businesses overcome the liquidity problems caused by the pandemic. Additionally, the loans provide some stability allowing companies to remain in business, where without the additional funding, significant cash flow reductions would have meant they may not have been able to survive.
However with social distancing measures still heavily in place, many businesses, particularly in the hospitality and tourism industry, will find it difficult to return to their previous trading levels and could fall victim to the economic recession that the UK have entered.
There will inevitably be casualties even with the financial help provided by the Crown and Leonard Curtis Business Solutions Group are here to support you, if and when this should happen. We specialise in insolvency avoidance and providing both cash flow management and alternative funding solutions.
For further information on how we can assist you and your business, please contact Donna Crompton on 07545 928608 or email Donna.crompton@leonardcurtis.co.uk