Lucky You

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Almost a fifth of all small and medium-sized businesses in the UK Are unlikely to get The Money you need to survive in The Next four weeks, despite the unprecedented support by the government.

This is according to investigations, the need to close a network of accountants, which suggests that between 800,000 and A Million companies nationwide, maybe soon.

have a Lot of company, told The Bbc that The Banks have refused, you with emergency loans.

The Banks say they Are following The Rules of the government.

German Chancellor Rishi Sunak , Said Two Weeks ago that The Company would be able to walk into The Bank branches and discuss Coronavirus to help interruption of business activity-loan (CBILs) of up to £5m to help you survive the shutdown.

The Promise of the Chancellor was that "good company in financial difficulties, the needs access to cash to pay the rent, the salaries of your employees, pay suppliers, or the purchase of shares, will be able to access to a government-supported loan at attractive terms".

However, thousands of struggling companies, through their banks by telephone or, if you do it, it is Said , of The Banks you Are not eligible.

the mayor of London, Sadiq Khan told BBC Radio 5 live that "The Banks have to help step-up" to small and medium-sized companies to survive, while the Corona-Virus-pandemic.

'disappointment after'

Steve Lord Belgrave & runs; Powell, a Nottingham-based engineering group employs 120 people and provision of services to customers such as BAE's Samlesbury site, where the F-35 and Typhoon-made fighter jets.

Since Salmesbury production, his business stopped, as millions of Others - to disappear before the prospect of cash, threatens its ability to pay wages and stay afloat.

"I was healing to see happy and astonished at the unprecedented aid, which was announced by the government Two Weeks ago," He Said . "But we put our most senior people on it and as each day passed, it was disappointment after disappointment. "

He Said some of the approved loan is high interest rates of up to 30%, the Mr Lord believes, "exploiting The Situation ". In the meantime, He Said , High-Street banks Are charging around 7%, but he was told it could get as long as a month before his company The Money .

Lord, the Lord thinks too much control has been handed over to The Banks and approved lenders: "The government needs to make it so everyone with the same conditions. "

"It seems to be that, if you Are lucky, The Bank -with The Right party, if you Are not lucky at the end you have to close Your Business . "

'The loans Are not

help,'Another business owner, Peter Jackson - who runs the jewellers employs 40 people across the North-west of England - Said his bank decided he was not eligible, because The Company is a small loss in the year 2019. But Mr Jackson Said his business was viable before the shutdown and expects to make a profit this year. It also owns valuable inventory.

"I thought, to help, the whole point of the loan, businesses such as mine on the water," He Said . "But you Are not going to help. "

The numbers, how many companies would not be able to get The Cash auditors, the More Than 12,000 small and medium-sized businesses across the country, the Corporate Finance network consists of a network of economy.

to provide an analysis of the government's help, which book will tell holder that the 18% of their customers were unlikely to get access to The Money you need to survive a four-week lockdown.

The findings echo similar reports from other groups of The Company , which estimate that up to one-fifth of the businesses could close if the lockout lasts a month or more.

The Bank say they Are determined according to the following rules of the government, which means companies can only use The Emergency loan if you loan, the in a normal commercial manner, such as borrowing against the value of a property.

businesses borrow More Than £250,000, it is Said , by banks, the Directors need to sign up personal collateral. That is, if the loan goes bad, due to a longer shutdown, your Personal Property is on The Line .

Under CBILs, a business owner's main residence is protected, but other Personal Assets could not be recovered if The Company keep up repayments. Under normal commercial loans, personal guarantees, the owner may be put At Risk home, if the loan goes bad.

Joshua Wade running a fast-growing, ethical cosmetics business, Skin Tonic, founded by his partner Sarah Hancock in the year 2015. He Said the lenders were insisting on early repayment, penalties, as well as the personal guarantees.

Skin & Tonic was founded in the year 2015 by Sarah Hancock, Joshua partner

"the interruption of The Business activities of the credit scheme is to support, In Principle , very welcome now," He Said .

"But the huge hurdle for us is the requirement for all Board of management members' personal guarantees. As the founder and managing Director, we Are already a risk, but everything we can't simply ask our non-executive directors, the risk in such difficult and uncertain times. "

A spokesman for the British Ministry of Finance, the banking trade body, Said : "lenders Are working hard to have the financing for all the companies that need it as quickly as possible and with the Coronavirus interruption Loan Scheme (CBILS) operation, where appropriate, with the financial resources already under the scheme.

"All of the lender be a company considered assets of the individual circumstances at the time of examination of applications, and many business loans can be either unsecured or secured on operating. "

Kirsty McGregor, founder of the Corporate Finance network, told The Bbc : "Small and medium-sized enterprises employ less than 250 people, the majority of the Workforce - 23 million people.

"We lose up to A Million of them in The Next month or so could. And the disastrous consequences for the British economy will be irreversible. "

Ms McGregor suggested that the government must take the support of small businesses, and the businesses go broke in their area, so employees can still be paid.

A spokesman for the Ministry of Finance, Said : "The Chancellor has been clear that The Banks ' support of small and medium-sized businesses in these difficult times should.

"That is why we take unprecedented security measures to businesses, jobs and our economy pay by £330bn in business loans and guarantees, 80% of wages to furloughed employees for three months, the VAT-and tax-deferral, the introduction of cash-grants of up to £25,000 for small businesses and the recovery of the costs of statutory sick pay.

"We Are working with the Financial Services sector, to ensure that the companies use the feel the full from this support. "

uk banking, uk economy, coronavirus pandemic, small businesses, sadiq khan, companies

Source of news: bbc.com