COVID-19; Government Support for SME's

You will have read about the Coronavirus Business Interruption Loan Scheme (CBILS) and the Covid Corporate Financing Facility (CCFF).

 

You will also have read that the banks are moving quickly to support existing clients through repayment holidays, overdrafts and other methods, as the process for ‘full-blown’ government-guaranteed loans becomes clearer. Other government support, including VAT deferral and furlough, give businesses some short term options but most will be looking to their bank to help them survive through CV19 until they are to trade more normally again. 

 

Meridian has been in close contact with the main lenders in the region for the last two weeks but we will not repeat the same information you have read about the shape and evolution of government-guaranteed loans.

 

Banks will use whatever tools they can (guaranteed or not) to assist companies, but can only do this with a clear and detailed picture of what their customers need. Businesses need to quantify the help they think they need, Demonstrate that they were profitable / cash generative before CV19 and forecast what their recovery to profitability may look like. 

 

In such uncertain times it may seem strange to be asked to predict how long and deep the pandemics impact on your business will be. Lenders know and accept that assumptions will change as time goes on, but they need to have a considered set of assumptions and forecasts so they can build a reasoned support package with clear logic behind it. They need to do this as responsible lenders and as custodians of the government’s guarantee.  

 

Credit processes are being accelerated and the most urgent cases are being ‘triaged’ but lenders still need to show structure and logic behind what they do. 

 

If businesses don’t have a clear Idea of what they’re asking for, why they have quantified that amount and a forecast of their recovery then the process will be more difficult and take longer. 

 

The checklist below will help you present the banks with what financial support your business needs and how you’ve quantified it, as well as evidence that you were creditworthy pre-crisis

 

 

Meridian has direct working relationships with area and relationship managers in all big 4 banks on the South coast. If you are facing difficulties getting access to the support you need from your bank or preparing the information needed for an application, we can help by: