The Post-Covid Lending Landscape:
Covid Loans:
March 2020 saw a need for the UK government to act fast and bring out loan guarantees for businesses suffering the unexpected impact of the Covid19 Pandemic. The UK government deployed several loan-guarantee schemes: The Coronavirus Business Interruption Loan Scheme (CBILS), Recovery Loan Scheme (RLS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loan Scheme (BBLS). These loan schemes aimed to support businesses across the UK who were experiencing revenue loss due to cashflow demands from lockdowns.
The RLS scheme is set to end on the 30th of June 2022. Even though the scheme is ending, Goodman Corporate Finance is in a perfect position to help connect your business with the perfect lender to deal with any cashflow or growth related issues you may be facing since emerging out of the pandemic.
Post-Covid Research into Businesses:
Research from the British Business Bank in early June 2022 has highlighted the following information:
- Loan schemes may have saved between 150,000 and 500,000 businesses and between 500,000 and 2.9m jobs
- Many businesses that engaged with the loan schemes could have permanently ceased trading in 2020 without the schemes
- The schemes met their objectives of unlocking credit for businesses, and resulted in £78bn in guaranteed loan facilities
- The schemes also saw reduction in approval times which was vital to prevent business failure
- The loans were either used to fund operational expenses or to boost reserves and resilience to unexpected shocks
- The introduction of BBLS helped to ease pressure on lenders
- In the first week, 270,000 Bounce Back Loans were issued and this reached close to 800,000 in the first month
Quotes:
Ross McFarlane, Commercial Director – Invoice and Specialist Finance at Aldermore said:
“SMEs are the backbone of the UK economy. Over the last few years, they have faced setbacks and false starts, juggling restrictions with supply chain delays and skilled labour shortages. Despite broader economic uncertainty, the cost-of-living crisis and ongoing supply chain issues, business confidence remains high, and SMEs are continuing to look to the future: to their recovery, growth and even transformation.
“However, it’s concerning that research by Aldermore shows that many SMEs are relying on products not designed for business use to fund their investments. Business leaders should explore specialist funding options designed with their specific challenges in mind, such as invoice finance or asset finance.
“At Aldermore, we’re focused on supporting SMEs, using our expert knowledge and specialist finance products. We recently created a new tool: the Aldermore BusinessFundingFinder , which allows businesses to answer a few simple questions around their requirements, such as the amount of funding needed, type of lending required and based on their circumstances, it guides businesses to solutions suitable for their needs.”
Our Managing Director, Paul Goodman, commented:
“Emerging from any recessional or downturn period can be when a business is at its most vulnerable in terms of cash flow requirements.
Post Covid19 we also have in the mix: Brexit, supply chain issues, rising interest rates, record inflation, energy and fuel prices all adding to this vulnerability.
With the depth and knowledge of the commercial finance sector, our team of off balance sheet resources are best placed to understand and support your working capital needs. Not just today, but for the medium to long term as well.”
How we can help businesses with recovery post-covid
If your business is still feeling the after effects from Covid19, then Goodman Corporate Finance has got you covered. By taking the time and confusion out of the funding process, we will manage the whole deal for you, from the moment you make the enquiry right up to the point where the funds have been released. With our handheld and cradle to grave service, we pride ourselves on putting you and your business first, with expert guidance.
We approach every new opportunity with ‘a blank sheet of paper’, offering a number of solutions for you to choose from. This unique approach means that you can choose the right solution for your situation. We put you at the centre of your own story.