Crunch time for small firms?
A recent article from Santander Bank revealed that many small businesses do not expect to recover to pre-pandemic levels until the Summer of 2022, which is as I write this post a good year and a half away. What was more worrying from the Bank’s research that one in twelve businesses don’t expect to survive the pandemic at all.
As business owners, there are many things that you can do to give your business the greatest chance of a full recovery. Many businesses have taken advantage of the various government-backed coronavirus loan schemes such as Bounce Back Loans and CBILS (Coronavirus Business Interruption Loan Scheme) which has offered a valuable lifeline. A key to survival is going to be to make sure that when the time is right for your business to start to make that recovery that you either have sufficient working capital or that you’re in a position to be able to raise finance.
As commercial finance brokers, we know that lenders will look at affordability, if you’ve maxed out on your borrowing and your balance sheet isn’t that strong it may be difficult to place your business or it may lead to an application being declined.
If you’d like more information on raising finance to beat the crunch, please get in touch.