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 socially distanced reopening

The government is giving small businesses the green light to reopen but the cost of putting socially distanced measures in place is a major barrier to achieving this urgent goal. How can owners afford the adjustments?

New figures from the Federation of Small Businesses (FSB) show that small firms are struggling to find the capital for the modifications that are required to meet social distancing guidelines for reopening. According to the data, 20% of businesses that have yet to reopen don’t have the capital to do so, while those that can face significant bills, of £1,000 or more.

The numbers are significant and highlight the impact that the pandemic has had on the small business sector and the obstacles must be overcome by its members, both firms that have received help with fixed costs from the likes of the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme, and those that have not.

The FSB has presented the Chancellor with a number of ways that the government can help small businesses reopen with socially distanced measures in place. Whether he acts on any of these suggestions remains to be seen, but in the meantime, small businesses need to find an immediate way of meeting reopening costs.

Alternative finance can help.

In the wake of prolonged caution from traditional lenders, alternative finance facilities such as invoice finance, asset finance, peer-to-peer lending and crowdfunding are proving a vital source of capital for small businesses, both for safeguarding cashflow and for essential investment. These facilities, which offer a more personalised approach to lending, are helping small businesses survive and grow.

Tellingly, alternative finance is playing a key role in the government’s Covid-19 business support strategy, in particular with regard to the Coronavirus Business Interruption Loan Scheme, which offers access to a range of finance facilities, including alternative finance services. Notably, the government continues to add alternative finance providers to the list of accredited lenders.

Having had to shut their doors for months, small businesses are desperate to reopen – their survival depends on it. To help ensure that owners can meet all the costs involved in doing so, including putting social distancing measures in place, it is important that they are aware of all the funding options available to them, including alternative finance.

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