When the government launched its business support loan schemes early in the pandemic, there was widespread praise for the initiative. The speed of roll out, simplicity of the application process, initial repayment holiday and low interest rates were just what embattled businesses needed at a time of massive disruption and huge uncertainty. The Bounce Back Loan (BBL) scheme aimed at
Those who run and manage businesses are familiar with the two traditional sources of funding. They understand balance sheet finance, whether it is debt from lenders or equity from shareholders. They also live with the vagaries of the liquidity (positive or more usually negative) that is generated from trading and operations, in the form of the difference between what they
The Coronavirus Business Interruption Loan Scheme (CBILS Scheme) One of the three main pandemic loan mechanisms, the CBIL Scheme, ran from March 2020 to March 2021. Lenders advanced a total of £26.4bn to 109,877 borrowers at an average loan value of £240,000. The maximum loan was £5m and the government provided a guarantee of 80% of the debt. The lender
Limited liability arrangements have long been thought of as a secure way for a business owner or director to clearly separate and protect their personal wealth from their business liabilities. Unfortunately, over time, these protections have slowly eroded, leaving business owners and directors in a more uncertain and, given the current times, potentially volatile position, both for their business and
In the first quarter of 2021, there were a record 39,601 applications by companies to be struck off the register at Companies House, a startling increase of 843% on the same quarter in 2020. Some of these will have been the normal dissolution of businesses past their sell-by date or where the owners are retiring or moving on to another
Government extends support to stop business evictions This has been the year when far too many commercial chickens have come home to roost as Covid has torn through the economy, laying waste to long-established business models and bringing even some of the strongest enterprises to their financial knees. Few industries have seen a greater reckoning than commercial property, except of
