Companies across the country and beyond are making provisions to deal with the current Coronavirus situation. These measures are generally to balance the safety of their employees, while still being available to their clients when needed. As often happens in times of global uncertainty, many lenders can and will “pull up the drawbridge” for small and medium sized firms, leaving them without access to funding/liquidity when they are most needed. These restrictions are often sector specific and can contribute to the secondary issues caused by the pandemic without continued Government and private sector support.
HMRC released a guide, outlining the support currently on offer to employers and employees (https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-employees-employers-and-businesses) which we recommend reading through to see what assistance is available.
The Chancellor, Rishi Sunak, who had already announced £30bn of provisions to help the economy through these uncharted times, took a vital step to secure access to funding for UK business by providing £330bn of Government backed loans to help thosewho need continued liquidity.
It’s worth remembering that in uncertain times, reducing exposure to third party risk can be an important step in making it through these periods. Just as we saw in 2008, many third party lenders become simply unable or unwilling to assist SMEs who need funding to keep going. One thing that won’t change, is that for those with pensions looking at raising funds for their company via Pension-led funding, we’re here to help. The business owner can take some control over their investments as well as their business funding by utilising the full capabilities of their pensions, with all repayments and premium being paid back to their own fund along the way.