Jump to MenuJump to Main ContentJump to the SidebarJump to About A&T Business AssociatesJump to How A&T Business Associates are DifferentJump to How A&T Business Associates WorkJump to Our LinksJump to our Industry NewsJump to Legal InformationJump to Viewing OptionsJump to SearchJump to Site MapJump to Contact Page

How small businesses can afford post-Covid-19 rebuild

The government has unveiled its lockdown exit plan and the announcement has SMEs thinking about how to rebuild their businesses. However, the costs associated with rebuilding will be significant. How can firms afford them? Alternative finance can help.

While it is good news that the UK furlough scheme has been extended to the autumn and the scheme to support self-employed workers is finally online, the thought of slowly going back to normal, whatever the new normal will be, poses a new set of challenges for small businesses.

For some small businesses, a major concern is what the marketplace will look like as restrictions are gradually lifted. How will consumers react after months in lockdown? What kind of spending behaviour will they display? What level of trade can businesses expect?

For other companies, while contracts are likely to continue with major clients, there is the challenge of keeping businesses going, including paying salaries, while they wait for key invoices to be paid. And for businesses that have large organisations as their core customers, the wait could be three months or more.

At the same time, small businesses have their own costs to meet. Aside from the likes of rent, utilities and wages, there is the matter of finding money for the likes of fixtures, licences, marketing and professional services, which while not top priorities are essential for regrowth.

So, how can small businesses afford to start rebuilding in the post-Covid-19 era?

Alternative finance can help.

Over the last decade or so, the likes of invoice finance, asset finance, peer-to-peer lending and crowdfunding have redrawn the small business funding landscape. These facilities, which offer a more personalised approach to lending, are helping small businesses survive and grow. They are providing them with access to capital, on an affordable and flexible basis, to help manage cash flow and for critical investment.

It is notable that alternative finance is part of the government’s business support structure, in particular the Coronavirus Business Interruption Loan Scheme, and forms part of the government’s British Business Bank portfolio of financial services.

Small businesses need to be aware of all the funding options available to them. Right now, this means taking advantage, if they can, of the government’s support schemes, including the Bounce Back Loan scheme and the extended furlough scheme. Further down the line, when it comes to rebuilding and support schemes are being phased out, this means remembering to look at what high street lenders and alternative finance services can offer.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.

Return to the News Page