Coronavirus update from lenders

Breaking news today published by the WHO (World Health Organisation) that they have now officially classed the outbreak as a "pandemic" and are both alarmed by the severity of the increase in cases globally, but more so by the inaction of taking precautions. We hope that all of our customers, funders and other connections stay well.

It is great to see that some High Street banks have chosen to extend a helping hand to those businesses who might be impacted by the outbreak and we would encourage you to speak to your bank to take advice and find out what support is being made available for you. Natwest, Lloyds and Barclays are leading the way in supporting struggling businesses hit by Covid-19. Natwest is offering loan repayment holidays for businesses most impacted. It could be that you will be facing some cash-flow pressures, supply-chain interruptions, even having workers off sick or in isolation. If your bank is proving difficult to work with, then please give us a call.

Away from the High Street, it has been brought to my attention today that credit appetite and therefore support for certain sectors has been withdrawn or greatly reduced. Various funders have pulled out of hospitality, import and export, aviation, education, travel and leisure, to name a few.

We would like to think that funders are following Government guidelines and supporting the SME sector, which makes up a massive percentage of the UK economy. With a lack of funding for those most at risk, this is something we feel very strongly about.

Having spoken to one of our funders this afternoon, Funding Circle, our contacts have confirmed that they are in fact still supporting such sectors and will be trying to help those vulnerable businesses as much as they can. Thank you to our Account Manager, James Casey, who has reassured us that it is very much business as usual down at FC HQ.

Coronavirus update from lenders

By: Tamara Renshaw

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