There’s no denying that COVID-19 has caused huge disruption to businesses across the UK.
So, to help make sense of this stressful (and sometimes, confusing) time, commercial financial experts, ABC Finance, have broken down:
- How government assistance works
- How to access funding
- The options available to you for traditional business funding
You can find the helpful guide here > https://abcfinance.co.uk/business-loans/guides/covid-19-funding-guide/
Government Grants & Support
Business Rates Removed for Retail, Hospitality and Leisure Industries
- For those in retail, hospitality and leisure industries, there will be no business rates to pay for the 2020/21 tax year.
- No action is required for this.
Small Business Grant Funding (with a Rateable Value of £15,000 or less).
- You are eligible for a £10,000 grant to help manage the cost of running your business through this crisis.
- You don’t need to apply – your local council will write to you with details.
- Unsure if you qualify? Check with your local authority.
Large Business Grant Funding (with a Rateable Value of £15,001 to £51,000)
- This is also for businesses based in the retail, hospitality and leisure industry.
- You can quality for a grant of £25,000 to help manage the cost of running your business through this crisis.
- You don’t need to apply – your local council will write to you with details.
- Unsure if you qualify? Check with your local authority.
Coronavirus Job Retention Scheme
- Available to all UK businesses, allowing you to claim back 80% of wage costs for ‘furloughed workers’ (those granted a leave of absence from this crisis), which will be sent to the employer.
- Further details about this are being released so please keep an eye out.
Options Available for Business Loans
Unsecured Business Loans
- These are still available, only take 5-7 days and can lend you £3,000 to £500,000.
- Terms are available for 6-60 months and currently, the government are covering the interest for the first 12 months.
- To find the best loan for your business, you should speak to a fee-free broker. Never pay upfront ‘advice fees’ or ‘admin fees’ either.
- Through the Coronavirus Business Interruption Loan Scheme, the government will be guaranteeing 80% of certain business loans and overdrafts to promote lending, too.
Business Cash Advances
- Allows business owners to borrow against their future card receipts, making it a strong option for businesses who generate a lot of money each month through a card terminal.
- Only takes 2-5 days and allows you to borrow £2,500 – £300,000.
Interested in reading the full findings? They delve into even more options: https://abcfinance.co.uk/business-loans/guides/covid-19-funding-guide/
