Sole-traders, partnerships and limited company business owners have been dealt a blow by the Covid-19 pandemic and the resultant economic downturn of the UK economy. Many business owners are having to ‘down tools’, make redundancies or furlough staff for the foreseeable future. This is unchartered water and the long-term impact of these decisions are yet to be seen.
The details of the Covid-19 outbreak are rapidly developing, changing every day and information on Government measures is being produced and communicated at a rate of knots. Whilst the steps taken for employees is good through the Coronavirus Job Retention Scheme, taking away much strain and worry of how business owners are going to pay their staff, support for directors and the self-employed still seems to be a long way away.
Whilst the measures introduced provide some peace of mind for employees and directors that their workforce is looked after, there is still disparity in how the Government will support the survival of businesses where live projects, suppliers, customers and sometime whole income streams are at threat.
Headline policies by the Government mention support that businesses can take advantage of, such as the Coronavirus Business Interruption Loan Scheme, Deferred VAT Payments and support for businesses in the retail, hospital and leisure industry. This may address the immediate risk to businesses, but only if they meet the eligibility criteria.
Many businesses who do not meet the criteria are starting to consider alternative options which can keep them in business – including finance on personal and business assets.
What are the criteria for an unsecured business loan?
Here at Flex Business Finance, we are seeing an uptake of interest in alternative funding options such as unsecured business loans. These can provide immediate short to mid-term peace of mind to keep businesses afloat.
Businesses seeking finance need to demonstrate:
- Profits for the last 1 year
- Business needs to be established for more than 2 years
- Business status needs to be formed as a Limited Company
What’s needed for a secured business loan?
It is possible to achieve a larger loan or capital raising through a secured loan up to £350,000. However, these commitments need to be secured against an asset with the required value, quality and ownership. Even in the current climate it is still possible to achieve this, but the travel and social distancing restrictions are severely delaying the surveying and assessment of assets – and are due to continue for the near future.
The key criteria for secured business loans are the same as those for unsecured, mentioned previously.
How can Flex Business Finance help you?
Flex Business Finance is open for smaller business organisations who are looking to;
- Generate more working capital
- Raise finance against assets
- Secure finance for business purchases, stock and acquisitions
- Raise funds for legal purposes i.e. PAYE, VAT, corporation tax
- Refinance high-interest bearing loans
- Consolidate debt repayments
- Secure short-to-mid term finance on invoices
- Fund a rebrand or relaunch
If you’ve got past the 2-year mark – you’ve clearly done something right. However, if you have been dealt a blow by the Coronavirus, you may need some extra support to cover that one-off cost, buy new equipment to diversify/pivot, hire extra staff to meet demand or even as simple as boosting your cash flow.
Flex Business Finance provides unsecured finance solutions business owners throughout the UK.
Telephone 020 8133 6698 to speak to someone at Flex Business Finance or Flex Financial.