Advisers will play 'key role' guiding businesses on finance options as 80% report falling revenues

Some 80% of businesses reported falling revenues between 40-50% in March, the latest MarketFinance data reveals.

In addition, the research — which polled 5,000 business owners following the wide-ranging measures announced the Treasury recently — revealed that more than two thirds (67%) believe funds will not reach them in time and they will run out of cash before Easter.

Only half (52%) of companies are considering taking advantage of the Coronavirus Business Interruption Loan Scheme (CBILS).

As 67% of businesses surveyed have a pre-existing loan, the main reason for not applying for funding from the scheme is making repayments for an additional loan.

Invoice finance ranked highest as an alternative to taking a loan, with 48% considering this option over the next 12 months.

“It is critical that business owners have a prepared mindset for all scenarios,” said Anil Stocker, CEO at MarketFinance.

“They will be heavily reliant on all their advisers — accountants, bankers and boards — to help them navigate the turbulence ahead.

“…The government has poured billions in subsidies, grants and guaranteed loans for businesses, but nobody can be sure how well the rescue will work and how this money will be propagated around the small business community.”

He added it was “imperative” that advisers were up to speed with all the necessary information and nuances of what is currently available.

“Business advisers will play a key role in guiding businesses on the best finance options for them.”

Leave a comment