A new survey has revealed the financial impact of coronavirus on the UK’s small and medium-sized businesses is likely to exceed £69 billion. The research, by Simply Business, says 67% have had to temporarily close as a result of COVID-19 – and more than 230,000 have stopped trading permanently.
The survey studied 3,700 small businesses and self-employed people, in all regions of the UK, to compile the SME Confidence Report, revealing that the lockdown had “profoundly impacted” on small and medium sized enterprises across the country. Each business has lost an average of £11,799 date during the crisis.
There are 5.8 million SMEs in Britain, which is how Simply Business calculated the staggering £69 billion in total losses.
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How is the government helping?
Despite the government’s help, including furlough and business grants, it’s not the same turnover as normal and many SMEs fear they will go under if the crisis continues for much longer.
Under the furlough scheme, the government is paying 80% of employees’ wages while they can’t go to work. It has also set up the coronavirus Small Business Grant Fund, the Self-Employment Income Support Scheme and the Retail, Hospitality and Leisure Grant Fund. There are various funding options available if the business fits the criteria.
What are the main effects on SMEs?
Even with the emergency funding package, SMEs fear it will still be a struggle to survive, with 41% of those surveyed saying their business is at risk of permanent closure due to the lockdown. When asked how long they could keep going under present circumstances, 14% said for one to three months, 12% for three to six months and 11% for six to 12 months.
Of those who are still trading, 28% say they are on less money and 21% have lost contracts and customers. Sadly, 17% say they are ineligible for the Self-Employed Income Support Scheme and aren’t receiving any help.
Financial problems have become a serious concern for many SMEs, who are worried about how to get back on track.
Could a short-term loan help?
For those who can’t get any government help, or are suffering a serious loss of income, despite grant aid, taking out a loan might mean the difference between survival and going under. If you’re worried about your financial situation, due to COVID-19, taking out a logbook loan could provide a solution for the interim period.
Logbook Loans 247 provides fast, short-term loans secured against your vehicle. We will hold on to your logbook (the V5 document) as security until you have repaid your loan in full, but the vehicle remains in your possession during the term of the loan, so you can carry on using it while you make the repayments. Once you’ve finished paying back the loan, which can be anything from £500 to £50,000, your V5 will be returned to you.
We can consider a loan against all kinds of vehicle including classic cars, vans, vintage cars, sports cars and luxury cars, and with the aim of helping your business to stay in the game, we can provide cash immediately if your application is successful.
Simply call us for a no-obligation quote on 0800 988 7255 or apply online to arrange a short-term logbook loan.