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The corona crisis – keeping your business afloat

Published on 24th March 2020

The corona crisis is hitting every business hard – and the government has announced a £330bn rescue package for British businesses which could provide a lifeline for those who have effectively ground to a halt overnight – either because they cannot open or supply chains are stalled.

But some firms are already finding that they can’t access the funding they need. They find that they are too big for the government’s new interest-free loan scheme, but not credit-worthy enough for a Bank of England finance option.

Don’t let your business fall through the cracks

There are two elements to the rescue package announced by the government.

The first is the new Coronavirus Business Interruption Loan Scheme (CBILS). This is aimed at helping small and medium-sized companies by allowing them to borrow up to £5m at preferential rates through the British Business Bank.

Under it, viable SME businesses of all types - those who were trading profitably before the crisis - can apply for a 12-month interest-free loan, 80% of which will be guaranteed by the government.

At the other end of the spectrum, companies with a larger turnover can take advantage of the Bank of England's new Covid Corporate Financing Facility. Companies with a high credit rating and making a material contribution to the UK economy can take a one-year loan. It is, effectively, a government promise to buy short-term IOUs from companies that are investment-grade - those with a very high credit rating.

There are other measures – some still being prepared:

  • All businesses can take advantage of measures like deferring VAT and Income Tax payments, and the Coronavirus Job Retention Scheme, to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during the crisis
  • There will be a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
  • Small business grant funding of up to £10,000 for businesses in receipt of small business rate relief or rural rate relief
  • Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,001 and £51,000

But, despite all these efforts, there could be thousands of businesses - from high street chains to many businesses in the UK hospitality and retail sector - that will not be eligible for the help they need to stay in business.

Some companies are already finding that they are too large for the smaller companies' scheme but too small for the larger company scheme which requires you to have an investment rating to apply.

There is a real danger that some businesses will slip through the cracks in the scheme - and if yours is among them, you may need to act now.

How Rangewell can help

Banks should have more clarity after all the details of the Government's business rescue package were published – but your business may not be able to afford to wait. You may need help now.

At Rangewell, we are experts in all types of funding for business, and we can help you find the funding you need now. We understand that it can be vital to act quickly if you are to keep your business afloat in these challenging times. 

We can help you secure the funding you need to maintain your cashflow - and secure it quickly.

If you have a cashflow problem caused by the coronavirus, or other urgent funding need, call us 020 3637 4150 - or email [email protected], and our experts will work with you to find the solutions you need. We can discuss CBILS and find out whether your business is eligible for help.

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Richard Mitchell

Richard Mitchell

Content writer
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