Coronavirus: A fifth of smaller UK firms 'will run out of cash'
Nearly a fifth of all small and medium-sized businesses in the UK are unlikely to get the cash they need to survive the next four weeks, in spite of unprecedented government support.
The promise from the chancellor was that"any good business in financial difficulty who needs access to cash to pay their rent, the salaries of their employees, pay suppliers, or purchase stock, will be able to access a government-backed loan, on attractive terms". "I was heartened and astonished to see the unprecedented help that was announced by the government two weeks ago," he said."But we put one of our most senior people on it and as each day passed it was disappointment after disappointment."
"It seems to be that if you are lucky you are banking with the right party, if you're not lucky you'll end up having to close your business."Another business owner, Peter Jackson - who runs jewellery shops employing 40 people across the north-west of England - said his bank decided he was ineligible because the firm made a small loss in 2019. But Mr Jackson said his business was viable before the shutdown and expected to make a profit this year. It also owns valuable stock.
After analysing the government help on offer, those accountants say that 18% of their clients were unlikely to get access to the cash they will need to survive a four-week lockdown.The findings echo similar reports from other business groups, estimating that up to a fifth of businesses could close if the lockdown lasts a month or more.
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