the UK, a quarter of businesses have had to close their doors as a result of the Coronavirus. Some
of these businesses will only be closed in the short-term, while some smaller
businesses are losing so much business that this crisis could spell the end of
restaurants, bars, nail salons, barbershops, non-food stores, and many other
businesses, including independent contractors, are all forced to shut down in
compliance with social distancing regulations being enforced.
has lost too many people losing jobs or being furloughed, and a lot of
businesses are seeing huge drops in cash flow. Thankfully there are some
measures in place to aid these businesses.
are a few ways these institutions are helping.
Debt relief programmes
the major banks and credit card companies are providing limited, but
convenient, debt repayment options for businesses hard-hit by COVID-19.
those who have loans, mortgages and other debts, some banks have decided to put
their repayments on-hold until the situation becomes clearer or until things
improve. These short, usually 3-month breaks in payments known as a ‘payment holiday’ and for some businesses these are
going to make a huge difference.,
a major relief to businesses that are expected to make repayments every week or
every month, but which will not be able to do so because their businesses are
shut down as a result of COVID-19.
money lenders in Britain have been encouraged to provide loans to businesses
affected by COVID-19, particularly those who may face permanent closure if they
cannot find the cash to keep their business afloat.
many banks and credit societies are rolling out different loan programmes. Most
notably is the coronavirus business
interruption loan scheme for businesses. With such schemes, businesses can access between £50,001
and £5 million on a term loan. Businesses will not be charged any interest
payments for the first 12 months, and the Government will reimburse the banks.
Businesses will also not be asked to make any capital repayments for at least six
scheme, amongst others, could be a saving grace for many businesses, both small
Interest and fees deferrals
numbers of banks and credit unions are intensifying efforts to support small
business clients, including allowing deferment of fees and interests for small
companies facing financial distress because of COVID-19. Banks are allowing
interest payment deferrals, in some cases, available for up to 90 days, with no
effect on credit score.
small businesses may also benefit from temporary payment relief, including late
payment and fee waivers. In fact, a number of banks have for a period of time
suspended late fees on small business loan payments, providing borrowers with
an opportunity to adjust to shifts in the workplace.
financial institutions are quickly adapting to the pandemic and going beyond
their regular remit to help their customers. Hopefully, the above-mentioned
support and ongoing financial support from the
Government can help
your businesses get through this tough situation and emerge stronger.