Coronavirus Now The Biggest Threat UK SME Stability
The coronavirus is now the biggest threat to SME’s since the financial crash of 2008. According to a survey by the Institute of Directors, one in five SME directors believe the outbreak poses a server threat to their business, signalling a collapse in business confidence across the UK.
Covid-19, which originated in the city of Wuhan, China, has spread to more than 110,000 cases around the world, with almost 4,000 deaths – the majority of which have been in China. There are now more than 300 cases and several deaths in the United Kingdom.
Companies across the UK are struggling to cope with the impact of the coronavirus outbreak, with the hospitality and travel sector being hit the hardest by the outbreak due to the cancellation of travel plans. Retailers and manufactures have also struggled to cope, as factories in Asia have remained shut and disrupting global supply chains.
The threat to SME stability in the UK is at the lowest levels since last September, where businesses were worried about a no-deal Brexit, according to Think Business Loans. “With the prospect of orders drying up and staff in quarantine, some firms will be looking at a
potential cash flow crunch and confidence in the economy has taken a knock,” Jamie Stewart, CEO of Think Business Loans, explains.
He added that more needed to be done in order to “help cash-strapped businesses bridge the gap during this challenging period”.
But it appears as though the banks are listening. Last week, NatWest unveiled its plans to offer UK SMEs a £5 billion coronavirus support package to help them through any disruption caused by the health crisis. The funding, they claim, will be used to provide loan repayment
holidays of up to six months, as well as temporary emergency loans with no fees up to £500,000.
However, Think Business Loans believes this isn’t enough to provide SMEs with the assistance they need during the health crisis. “Banks have consistently let small to medium enterprises down time and time again” says Jamie. “their failure to provide access to sufficient funding before the crisis has hampered growth productivity and are likely to continue turning down SMEs due to the added risk”
Think Business Loans is an online commercial finance brokerage, that works with both high street banks and alternative lenders. With the coronavirus adding to the industry disruption, Think enabled thousands of businesses to access funding like never before.
The UK’s leading technology-driven commercial finance specialists has recently launched its ThinkApp, the first real-time, mobile business funding platform, with credit score monitoring. Powered by Think Business Loans, the app uses world-beating matching technology that enables UK SMEs to check their eligibility and apply for finance in a matter of minutes.
As one of the quickest credit brokers in the UK according to Trustpilot, Stewart is confident online fund solutions will only continue to boost the economy and bring about much needed assistance during the crisis.
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