Coronavirus and Your Business 20 March Update
As we mentioned in our update yesterday, we will continue to provide you with the latest information from the Government and give you further support during this challenging time.
Your Relationship Partner is on hand to co-ordinate any assistance that might be required from our specialist departments, or to just discuss any concerns you may have. Please do not hesitate to contact us – we are here to help.
Funding Options and Lender Update
We have spoken with a number of our clients and contacts to understand the current landscape and this is what we are seeing.
Despite face to face meetings now being discouraged, lenders are still lending as most can fully function remotely. Refinances are currently progressing and new funding lines are being put in place. We have though, seen signs that appetite is waning a little in the peer-to-peer sector.
Lenders are also very much prepared to help existing clients, certainly in the form of repayment holidays for loans, asset finance and mortgages.
Coronavirus Interruption Loan Scheme
The Government are introducing the “Coronavirus Interruption Loan Scheme”, which should be available from Monday 23 March.
The exact details are embargoed, until formal launch, to ensure maximum publicity and so that no lender can gain a competitive advantage over another. We understand from trusted sources that the term will be five years for larger loans, extending to 10 years for smaller amounts. Loans will be interest free for six months and a “fast track” application process will apply. The scheme will apply to businesses with a turnover of no more than £41 million per annum, other criteria will apply.
Guidance regarding Companies House late filing penalties
Companies House have announced measures to support companies who are likely to file their year-end accounts or confirmation statements late. For further details please look at the information on our website. Please click here to read our full article on this.
Interest rate reduction
The Bank of England has slashed the base rate for the second time in just over a week in a further emergency response to the coronavirus pandemic, reducing it from 0.25% to 0.1%. This latest cut takes the base rate to its lowest ever level.
Likely to last for 12 weeks – how cashflow modelling can assist
The Prime Minster announced in his update on the 19 March that he hopes ‘we’ll be through the worst of the pandemic within 12 weeks’. We would advise that clients model and sensitise their cashflow carefully to help navigate through this period.
We are able to provide further support in this matter so please do speak to your Relationship Partner as necessary.
The information was correct at time of publishing but may now be out of date.