In an article included in Credit Connect today, they outlined the poor financial position of SME’s with 75% of those owners surveyed having supported the business from personal funds, 44% saying the Covid outbreak has negatively impacted their business and having sought additional funding and 42% saying that cash would run out in less than 6 months
Government has made massive amounts of funding available via furlough schemes, loans, grants and deferment, if not, the figures above would be much worse.
There were roughly 960,000 applications for Bounce Back Loans and roughly 93,000 applications for Coronavirus Business Interruption Loans
A significant number of businesses have been severely or irreparably damaged by the length of lockdown and others will struggle to survive in what will be new trading conditions for large sectors of the economy.
Owners putting their own money into their business will be a first reaction to save what will be for many their source of income and will take up most of their working week
However, this may create future risk personally for the owners and may only be a short term measure if the business doesn’t take full advantage of the easing or end of Lockdown.
Before taking that risk, it makes sense to review your business and see if changes can be made to help it survive the easing or end of lockdown.
At Harrisons Business Rescue we work with owners to find issues and fix them by providing solution that work for the business and owners.
Contact us HERE for a free initial conversation on how we may help
The full article from Credit Connect can be found HERE