Worried SMEs are fearing the accumulation of debt
Although the government have pledged an additional £150bn in government bonds there is still more needed to help keep many SME’s afloat.
The main reason for concern is although there are grants available, they still need to paid back and the accumulation of debt is a major worry now and in the future. For companies barely breaking even that additional loan repayment may well be the tipping point.
The concern is that what actions we take now to keep a business solvent are merely creating a future problem that some companies just won’t be able to survive.
There are options being considered for the government to look at incredibly long term repayments, but this decision can only be made by the government as to the repayment terms of money borrowed.
While extending the Bounce Bank Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CILBS) is a step in the right direction this means lenders will be allocating money against a three or five-year loan.
Bounce Back Loans as yet are incredibly low yield and have an administrative burden attached to them.
CBILS are a better option from a banks point of view as it gives them the opportunity to look into the companies and understand which sector they operate in.
To find out more about our services, click on the relevant links below:
- Support service– From as little as £30 per month
- Training– Low cost webinars and courses to help you improve Cash Collection performance and how to use the Court’s Small Claims process.
- Outsourced collections– We become your virtual Credit Control department. All communication with your customers is carried out in your name
- Debt Recovery– Speak to us about our contingency feeservice
- Consultancy– Review and strengthen your ‘Order to Cash’ process in a practical way and coach your staff to improve performance and cash flow.
Or just call us on 03332 413 203, email Contact@cmgroupuk.com
