Coronavirus Pressure for Self Employed Businesses
According to this recent article on the BBC, only 2% of businesses who have applied for the Coronavirus Business Interruption Scheme have been successful with their loan applications.
FSB and CBI and MP’s from the government have come out and said that the process by banks needs to be easier and not use the lending criteria used before especially when the loans are backed by the government by 80% but this is still not making any difference. When it is happening to viable businesses with full order books who for a variety of reasons such as a loss the previous year or the business only has one year or less of auditable books will result in a lot of businesses having to cease trading.
Business owners were already in stressful times due to the Brexit uncertainty and starting to notice some degree of improvement before the shutdown. One thing is certain that there will be a new normal and the uncertainty will continue for at least the next couple of years.
If you are a business owner and finding debts unmanageable there is help available.
If you are struggling to decide whether to ask for payments on your mortgage or loans to be deferred when you know you may not be able to make the repayments in the future, please just get in touch before you make any decisions so that we can help you consider what is best. Here are a few things which may be options depending on your circumstances:
- Negotiated agreement – we help you to negotiate an informal agreement with your creditors to repay at an amount you can afford over an agreed timeframe
- Re-organisation/consolidation loans – taking your existing unaffordable loans and putting them into one loan which is affordable
- Debt relief order – if you meet the strict eligibility criteria this allows you to write off any eligible debt
- Self-petition bankruptcy – all your affairs are taken over by the official receiver and you can agree to fully write off all your debts unless they are secured on your home or other property
- Debt management plan – we help you to reach an informal agreement with your creditors to make one affordable monthly payment to pay off your debt over an agreed period
- IVA – we help you to make a formal agreement with your creditors to pay an agreed amount of your debt to them either in a lump sum or over an agreed period.
We know people are worried – so please don’t worry alone. We are here to help on 028 9039 3626.