The Word

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Gary Crosbie runs a previously successful business, But is struggling to get a loan,

Gary Crosbie wants to keep his employees, But like other small companies, to be profitable business is now run Out of cash due to the Corona Virus shutdown.

Mr. Crosbie is running Interefurb, the cute pubs, hotels and restaurants.

He says he can prove three years of profit with a £50,000 cash in The Bank .

However, because his bank decided not to support the construction industry, he has not passed The Test , which required banks to lend only to, according to their pre-shutdown criteria. He was rejected, a government backed loan last week.

"My accountant said, 'you can off pay your VAT. "But that is up to date. She said, 'Well, you can pay The National Insurance " - But I would always be up-to-date To do so for The Right Thing to do - I can't help everyone," he told The Bbc .

So Far , banks and financial institutions have borrowed More Than £1. 1 billion for small and medium-sized enterprises Under the government of coronavirus-loan scheme, according to figures released by the Uk Finance on Wednesday.

More Than 6,000 loans were provided, with an average value of About £185,000.

But The Message from small businesses and politicians, it is that loans approved too slow and that the government needs to bring urgent reforms to stop the scheme, the companies are going bankrupt.

In the scheme of the critics, the shadow business secretary Ed Miliband, who says, it is "just good enough".

He added: "The Chancellor needs to move to a 100% guarantee for loans for smaller businesses, as did the other countries. In this economic emergency, it is The Right Thing to do. "

The British chambers of Commerce, said that only 2% of British companies had previously secured loans.

companies are crying Out for help and despair, to the recording of the crisis loans, The Banks managed to give.

Six thousand is far from The Number of applications and a tiny fraction of those who face a Cash Flow crunch.

Many bosses have only a few days. You need to find a way to pay wages to The End of the month.

It is true that the rate of lending has accelerated. And The Word in the world of banks, that four approved five loans.

But everyone wants, that this System works faster and for The Money to support the wages for furloughed employees will be made available as soon as possible.

Urgent reforms

The Finance Ministry said it was "unprecedented measures to support the economy".

she said that the action included £330bn in business loans and guarantees, the payment of 80% of the furloughed wages of the employees and giving a £3 billion cash grants to a quarter of a million small businesses, as well as tax accruals and deferrals.

German Chancellor Rishi Sunak has already been excluded, the taxpayer, give 100% security for the loan scheme.

"When people say I should be 100% of The Risk that it is not Really Me , it is actually all of us, it is the taxpayer taking 100% of The Risk of the loans defaulting," He Said .

credit problems

the Minister of business activity-loan scheme brought in by the Coronavirus-interruption, with the promise that they would do whatever it took to support the organization meets the "shutdown".

of the government loans were supported by all the firms, the solvent and trading, when the shutdown started.

The Treasury revised the loan scheme Two Weeks ago, while The Banks said they worked through the Easter weekend to boost the lending.

But some entrepreneurs, told The Bbc that they will not be able to access loans or grants.

Dave Moran, the company had full order books before the coronavirus lockdown

Dave Moran, who previously worked as a senior executive in the pharmaceutical industry, owns the UK, the challenge, which will run corporate team-building events.

For the last two years it has run at a loss, as a start-up company, But the book was moving into the profit zone this year with a full order, before the lockout was imposed.

"Rishi Sunak said, 'What it takes', and for me good words," He Said .

"If you had spoken to me three to four months, for 2020 was On Course for a record harvest in the year. In essence, we have Lost Everything overnight.

"to keep going We. I have not dismissed employees - we always have to pay full number. We Are in a position where our money is going Out . "

He was told by his Council that The Business could not be granted because it is a sub-tenant in a building and his bank has not signed up to the scheme.

"You have The Business Minister, Alok Sharma , and the Chancellor, Rishi Sunak , they said," We will not let bureaucracy Get In The Way , "But that is exactly what happened," He Said .

The National Association of Corporate Finance brokers (NACFB), whose members arrange financing for thousands of Small Business customers, said that even after a government overhaul announced Two Weeks ago, it was still far too long to apply.

Each application lasted More Than five hours to go through the necessary paperwork, it said.

Paul Goodman , the Chairman of the NACFB, said that was much too slow, so that the country's five million small businesses access to cash in the time.

"The Way it is Set Up , The Banks are still figuring Out whether or not you would lend to the company, if it is in normal times," He Said .

"that means That it is not for the customers, which is a perfectly viable business model, But not all of The Banks show to Get In need of a government-supported loan. "

According to the BCC to pay 17% of the companies had only enough cash to last month, while 36% have less than three months of cash reserves.

MPs on the all-party group for Fair Business Banking say that the Plan needs to be made much easier and faster, in order to prevent small and medium-sized companies go Under .

Conservative MP Kevin Hollinrake warns that without faster loan companies will go bankrupt,

Kevin Hollinrake , the Chairman of The Group , said: "We have seen a lot of is approved for more loans, which is clearly good news.

"But we have to easier The Process and quicker to get The Money in Bank accounts.

"We need to see better data on a daily basis, The Number of applications approved, the numbers refused, and the numbers. We have only days to get this right. "

He Said that next week, many small businesses have to payroll, and liabilities. to go

"this money begin in The Business bank accounts This Week , or we see a lot of small and medium-sized enterprises, a bust of next week," Mr Hollinrake warned.

Hm Treasury , said designed: "The credit scheme is to banks and the company, the trust, and ensure that viable businesses get the support they need.

"We work closely with banks to ensure that Finance those who need it as quickly as possible and seek to continually review our support to see what improvements can be made," the spokesperson.

rishi sunak, uk banking, uk economy, entrepreneurship, coronavirus lockdown measures, self-isolation, coronavirus pandemic, small businesses, companies, wales business, banking

Source of news: bbc.com