The BBC, together with banking group TSB, conducted a recent poll which revealed that many businesses have taken on significant amounts of debt during the pandemic. And that many are in great need of flexible repayment solutions to rebuild their revenues and steer away from an unsustainable debt crisis.
This poll highlighted that around 42% of respondents took on debt during the crisis, with around a quarter stating that they needed to scale down operations to repay, and one in ten admitting that they may need to cease trading altogether.
It’s also clear that many company directors don’t know where to turn and what the future will hold following the global crisis…
Lending schemes provided a temporary lifeline
Of the companies that were surveyed in the poll, 42% stated that they had accessed finance during the pandemic through government lending schemes – including the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS).
Businesses that took advantage of these lending schemes were evenly spread across all sectors. However, the manufacturing sector was revealed to have been more likely to have taken out finance.
It seems that businesses using the schemes were doing so simply to stay afloat and support critical day-to-day operations during the pandemic – with 71% stating that they used finance to support rising cash flow problems.
Thousands in need of the right financial advice
It’s clear that there are thousands of businesses affected by the pandemic, and who are now facing further local lockdowns and the planned withdrawal of various government support schemes.
The important thing now is to seek out professional advice before it’s too late, before best and cash flow concerns spiral further or out of control.
At Clarke Bell, we have more than 28 years of experience offering advice to company directors and helping companies deal with their financial problems. Our experts understand the range of options available to you and can help you pick the right one for you and your business.
Mounting debts and falling profitability can seem like the end of the world, but often all that’s needed is the right expert advice and a fresh perspective. Our specialist will talk you through the solution that best suits your particular situation, providing you with clear and detailed guidance every step of the way.
Our team has helped thousands of company directors and we can help you.
We can help you with our business rescue and recovery advice, or by closing you’re your company with the liquidation process.
We will not charge you for our initial consultation. Any fees subsequently charged will depend on the solution you choose and will only apply once properly authorised. Our advice is confidential.
Take that first step and contact us on 0161 907 4044 or filling out our contact form.