Ready to re-start the Economy? – Most UK firms could re-open their doors within three weeks – Covid-19
Earlier this month Boris Johnson actively encouraged a return to work for those who cannot work from home and with another review due on 28 May it is likely he will loosen lockdown further in June.
According to a survey carried out by the British Chamber of Commerce earlier this month 89% of respondents said that they will require three weeks or less to prepare to restart operations – the majority of which are small to medium enterprises (SMEs).
Just over two-thirds of business-to-business service firms said that they would need less than one week to restart, compared to 50 per cent of business-to-consumer service firms, where social distancing is seen as a bigger issue to control.
Job Retention Scheme
Approximately 74 per cent of respondents have furloughed a portion of their staff; the job retention scheme has recently been extended to 31 October and remains vital in supporting businesses to preserve jobs and livelihoods.
Bounce Back Loan Scheme
Over a third of those interviewed for this survey said they had/were thinking of applying for a Bounce Back Loan. Almost a fifth were, however, concerned as to their ability to repay the loan.
The Bounce Back Loan Scheme provides loans of between £2,000 and £50,000 to SMEs effected by the impact of Covid-19. The scheme is 100 per cent government backed and does not require a personal guarantee from the company directors.
Whilst businesses may soon be ready to re-open their doors, they will require clear guidance with sufficient public transport and the re-opening of schools playing a key role. It will also be critical for the Government to maintain and evolve the financial support currently provided to give businesses the best possible opportunity to navigate their way through this crisis and avoid insolvency.
If your company is experiencing financial problems, as a result of the Covid-19, please get in touch to discuss your current situation and the options available. Our skilled and experienced team of Insolvency Practitioners will help you find a solution.
Please call us now on 0330 159 8080 for a FREE confidential initial consultation.