Tracy Ewen, managing director at independent commercial finance provider, IGF, argues small businesses need advice on accessing the government’s £20m relief fund set up to help businesses get up and running again after the recent riots in the UK
“Isn’t this fund somewhat similar to the £20m fund given to the banks to distribute to the SME market? Of course, it is absolutely vital to provide financial help to these small businesses straight away, not least because cash starvation will cause the demise of many businesses, but as yet, no details have been communicated as to how soon access to the fund will be given or what criteria will be imposed in order to receive assistance.
“Delaying HMRC payments and deferring council tax is all well and good, but what proposals are the Government outlining for repayment? Doesn’t this sound similar to the story at the start of the credit crunch when businesses were given repayment holidays and time to pay, only to be told later down the line that they must bring the arrears up to date or risk prosecution? Firm guidelines must be communicated so small businesses can make an informed choice about their borrowing and cash requirements. My advice would always be talk to advisors to plan cashflow for the next few months, rather than fire-fighting on a day to day basis.”