Manufacturers across the UK are feeling the economic strain from the impact of COVID-19 on their industry.
Insight shared by fintech business lender, MarketFinance, has shown that 67% of UK manufacturers have less than £50,000 in funds and without financial support will run out money by the end of the month.
The Government has outlined plans to help those whose livelihood has been disrupted by the virus. The most noted aid being the Coronavirus Business Interruption Loan Scheme (CBILS), which many UK manufactures have turned to during this time. 50% of manufacturers are seeking £643.5m CBILS funding before the end of April.
The Treasury revealed this week that more than 2,500 loans for businesses have been approved. British banks have now lent £453m through the Government’s loans scheme, showing that the payout is picking up pace.
Just last week, Chancellor Rishi Sunak amended the bill so more struggling businesses could take advantage of it. The legislation shift allows for smaller businesses from all sectors to apply for the full amount of the facility.
The majority of manufacturers are seeking an average loan of £62,500, however many industry professionals are still concerned that this may not be enough. There are also concerns these businesses will not be able to get access to these loans in time.
Many firms report the service is still not working properly. Some have said they have requested assistance but have not heard back from banks.
“We have a roastery in Brixton, London and our revenue dropped by 91% in March. The lockdown has meant our hotel, cafes, restaurant and office are closed. We are pivoting to online sales and sales have gone up 7-fold but it’s nowhere near the revenue we need to sustain the business alone. We urgently need the CBILS funding at this challenging time and give our wholesale customers time to start trading again. We’ve not needed a loan before but hope that Lloyds Bank will look after us,” commented Emma Loisel of Volcano Coffee Works, a Coffee distributor.
*To check your eligibility for CBILS funding visit British Business Banks.
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