Whilst it looks like lock down measures will be in place for a lengthy period of time, what does the financial frontline look like for SMEs?
COVID 19 measures are impacting SMEs in three ways;
- Supply chain disruption making sourcing products and parts more difficult
- Business continuity disruption with fewer employees available due to sickness or childcare demands
- Demand changes, there’s a complete collapse for some products and services.
Some businesses are benefiting, others are suffering.
The FSB states how “small businesses are vital to our communities at a time of national emergency”. So how can the financial brokers and advisors ensure SMEs are getting the best financial solutions for their current and future challenges?
The UK Finance’s SME Advisory Group have told us that businesses are generally risk adverse when it comes to external finance. They are concerned about the speed of decision making and the ease of the application process. The banking and finance sector has lent over £1.1 billion to SMEs so far through the Coronavirus Business Interruption Loan Scheme (CBILS).
Stephen Jones, Chief Executive of UK Finance, said:
“The banking and finance sector recognises the challenging conditions faced by many businesses and the critical role we must play in helping the country get through this crisis.”
Brokers are key in providing the RIGHT information on the financial aid available to SMEs. Read about our financial solutions and expedite to recovery offer to SMEs in the UK in All Businesses Great and Small.
Perhaps the better financial solution lies in GRENKEs products, allowing SMEs to keep cash flow in the business. Learn more below.