Small Business Advice During Corona

It is estimated that one in five small businesses in the UK will run out of cash because of the coronavirus shut down.

A staggering one in three UK based businesses say that they expect their income to crash by over 90 percent, which could render most of them bankrupt.

Retail is one of the worst affected sectors, with over 40% of small businesses in this sector saying that all of their income will completely disappear.

The IT and telecoms sector appears to be among the least affected sectors, with around a quarter of all businesses in this area stating that they do not expect to see any drop in revenue.

Small businesses playa vital role in the ecosystem of our economy, and if they go it will leave a huge hole in the wider UK economy.

People are calling for more action to be done in order to protect and preserve these essential businesses.

The British Government have been offering small businesses one off grants of £10,000, but some say that this is not enough to keep them afloat.

There are loan schemes that are being put in place that will prove helpful for most businesses, known as the CBILS or Coronavirus Business Interruption Loan Scheme.

These loans are being fulfilled by a number of lenders including relatively new banks such as OakNorth Bank and Starling Bank.

So far only 2,500 loans worth £450 million have been agreed, and bankers say that they are currently overwhelmed but the number of applications they are receiving.

An estimated 300,000 applications have been made, and banks are struggling to get through this vast volume of applications.

The addition of new lenders will hopefully ease this strain and get these loans out to small businesses that are desperate for them.