Many businesses are struggling during the COVID-19 crisis due to continued business disruption caused by lockdowns and the subsequent rules on business closures.
If your business is one of them, you aren’t alone. If you are struggling and finding that your company can’t pay bills as they come in due to the COVID crisis then there are a number of resources, you can access.
What action can you take if your company can’t pay bills during the COVID-19 crisis?
Back in February we reviewed the COVID-19 financial support available to businesses and the self-employed as well as highlighting the government operated business support finder tool.
The business support finder will most likely be your first port of call if you do find your business in a difficult position – it will provide the most up to date information about the support that is available to you and your business.
What funding and loans are available during the COVID pandemic?
A full list of government provided support for business and the self-employed can be found on the gov.uk site. The support available and deadlines to apply for different support schemes vary so do check here for the most accurate, up to date information.
Support schemes available from the government include:
- Job Retention Scheme (also referred to as the furlough scheme)
- Statutory sick pay reclaim scheme
- Business rates relief
- Self-Employment Income Support Scheme
- Recovery loan scheme
- The Restart Grant
Advice and non-financial support may also be available to your business from:
- Business Representative Organisations and Trade Associations
- Outside government support – public bodies, organisations and charities
These resources may be able to provide you with information and support linked to operating during COVID-19 within your specific sector. As well as providing guidance on managing areas such as mental health and wellbeing, practical guidance on adapting your way of working, communicating with employees at time of crisis, as well as more specific one-to-one expert advice such as that provided by Enterprise Nation.
What are payment holidays?
Payment holidays were another financial support tool which the government introduced at the start of the pandemic, allowing those struggling financially to apply for temporary payment breaks on things such as mortgages, credit card and loan repayments.
The official deadline to apply for payment holidays was the 31st March so these schemes aren’t now accepting new applications.
From the 1st April however, the FCA website states that ‘if you’re struggling financially as a result of coronavirus, your lender will provide tailored support that will take into account your individual circumstances.’
If you are struggling to make repayments on a range of different types of finance, advice given by the FCA is to discuss this with your lender as soon as possible. Do not wait until you miss a payment. Your lender should then work with you to provide tailored support.
At Anthony Jones we appreciate this has been a difficult time for business of all sizes and are working to support our customers as best we can. We also update our business insurance pages and our blog with information relevant to the COVID-19 pandemic and support businesses can access. We also look at key issues which may impact businesses at this time such as working in a COVID secure manner, remote working the return to work and workplace COVID-19 testing.