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Nobody was prepared for the scale and speed at which the pandemic spread, and the consequences for many businesses have been devastating. Despite ongoing unprecedented government stimulus, millions of SMEs have had to endure some of the hardest months of trading they will have ever faced.

We’re yet to understand the full financial impact of this health crisis, but what we do know is that the UK’s small businesses will need the commercial finance industry more than ever to fulfil its role in helping them fight for survival through this turbulent time. Initiatives such as the ‘Moving Britain Forward’ campaign coordinated by the NACFB, is a great example of action which has attempted to tackle issues posed by Coronavirus to small businesses head-on.

Necessity is the mother of invention

One of the most admirable traits shown by small businesses throughout lockdown, has been their resilience to adapt in the face of crucial fast-moving government restrictions on the way they can trade. Examples of this include businesses operating in the leisure and hospitality industry, that have rapidly established or upscaled their online presence, or have been able to keep going by making local deliveries. This experience and requirement for businesses to adapt and ‘roll with the punches’ will surely make the businesses which prevail far more robust for trading in the future.

This resilience has in part been facilitated through the introduction of vital Government initiatives including the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and the Job Retention Scheme (JRS) to name but a few. However, the CBILS and BBLS only go so far in alleviating pressured cashflow for small businesses leaving some in need of additional funding.

Access to the right funding

Liquidity is critical to keeping small businesses afloat, and the launch of the Bounce Back Loan Scheme in April has given many small and micro businesses the short term boost they required.

As we slowly begin to resume some sort of normality, all lenders need to evaluate the way in which they underwrite and where possible try to appraise applications on a case-by-case basis. Crucial questions need to be asked of each application; how has the business adapted its practices to take advantage of new opportunities, how has the business ensured its long-term viability, and crucially, how can they assess their ability to repay when the time comes?

Our lending decisions have always been made by people, rather than algorithms, so the practice of approaching and evaluating each business on its own merits, with an open mind, is the way we have always worked. Businesses have never needed a relationship-focused lender more and where possible, lenders need to listen to business owners, hear their stories and try to make sense of their situation.

Working with our Broker community

As always, our brokers continue to play a pivotal role and have risen to the challenge of helping to identify and work with clients who cannot entirely satisfy their funding requirements through government initiatives. We welcome your support and will continue to provide SMEs with the funding they require to propel their business forwards.

Now is the time for business owners to explore all avenues of funding available to them so that they can start to plan their recovery from this pandemic.

Get in touch on 020 3637 0570, or email info@credit4.co.uk to find out how we could help your clients access the funding they need.