Breathing Space - BS4C will help ensure you keep in business.
News from our business partners
After a very difficult 18 months trading exacerbated by Covid19 and the current “pingdemic” are things going to get better or worse?
The perceived thought is that with ending of the Furlough Scheme, the Forfeiture Moratorium which has already ended, and governmental loans like CBILS and BBILS which now have to start being repaid. It’s likely that the cumulative effects of all these financial problems could create the perfect storm for business.
We have heard numerous times recently from REC members and from businesses in other sectors that mainstream banks are demanding that facilities have to be repaid in the very near term. The usual format is to request the overdraft be repaid in 14 days in full. Banks knowing that this is virtually impossible then offer a loan at 11/16% to repay the overdraft. This is always done without notice and where the facility is operating well within normal terms.
At the moment, we are in uncharted waters in respect of the Employment of staff. There are no accurate figures for numbers of staff on furlough but it is understood from a number of sources (FSB, CBI and the DOE) to be in the region of 2 million people or potentially 9% of the UK workforce. Some sectors have been very badly hit but it’s accepted that the jobs of many people on furlough will be shed as soon as the scheme ends. Therefore, the potential for knock on in associated industries and support services could be 600,000 redundancies and cancelled contracts. The FT says that people employed via agencies or on schemes where the tie to the business is at arm’s length will be the first to go. We have already seen a number of businesses in the employment sector having their banking facilities removed and in many cases by a letter through the post giving 14 days’ notice from the date of the letter and the letter takes 7/8 days to arrive.
BS4C and many other sources in the press believe that SME businesses are going to encounter very difficult times over the short and medium term.
Now is the time to take necessary action to protect your business and staff, make contingency plans to ensure continuity for your company.
If you would like to benefit from our service or need support with financial issues;
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