That's a good question. I'm glad you asked me. 'They didn't ask you, boss.' I imagined they did, Voice. That's the main thing. You know how powerful my imagination is. Nothing can stop it. Nothing! Ha, ha, ha!
Anyway ...
Press release: 84 percent of businesses set to apply for government-backed loans.
Oh, okay. I suppose it's all going to plan ... ?
30th November 2020, London: The Chancellor of the Exchequer, Rishi Sunak, detailed the onset of the economic emergency facing the UK at last week's spending review. This comes at a time when demand for the government-backed CBILS loans is set to soar by UK businesses as their Bounce Back Loans dwindle and cash flow dries up, according to the latest MarketFinance business insights. Of the businesses that applied for a Bounce Back loan (up to £50k) during the summer, they now have only £3,150 remaining and estimate that will see them through to the end of this week.
Yeah. Maybe only the big corporations will survive.
Since the announcement of the second national lockdown measures, a staggering 84% of businesses will be applying for CBILS loans. They indicated this would be used to protect them over prolonged lockdown measures and in anticipation of more bills, taxes or duties to pay. In addition to this, more businesses know they can refinance their Bounce Back Loan with a CBILS loan - up from 68% two months ago to 83% today.
And what does our Anil say?
Anil Stocker, CEO of MarketFinance, comments: "The stop-start government announcements on lockdowns haven't helped UK businesses. However, they continue to fight on and will, naturally, require more funds to bolster them through a tricky winter period. Looking ahead, ultimately, it will be the private sector which will enable the Chancellor to get the country's finances back under control, so business leaders will be looking for some pro-growth, pro-enterprise stimulus measures in time to come."
Well, Anil, they can fight on as much as they like. I'm not sure it will change anything. 'It's all going to plan, boss.' Maybe, Voice. Maybe.
Shockingly, two in five businesses (42%) are still waiting to be paid for work completed since the first lockdown. In June 2020 they were, on average, waiting for £148,917 which came down to £33,906 in September, but there is still £27,134 outstanding to them.
Two-thirds of businesses reported waiting longer to be paid. One in five (20%) reported their payments terms from customers have been renegotiated to 3 months or more. Businesses in Wales and those in the leisure, marketing and telecoms sectors have been the hardest hit, in terms of longer waiting times to be paid.
As businesses get paid later, half (49%) are withholding payments to suppliers fearing cashflow worries and future economic shocks. Meanwhile, a third (35%) reported they are intentionally stockpiling cash reserves to safeguard their companies over the winter trading period.
Okay. You want to add something, Anil?
Anil?
'He's gone.'
Come on, son! Don't be shy now. You started off well.
Anil Stocker adds: "We are witnessing a cash vacuum in the economy. Businesses are waiting longer to get paid and in turn are holding out on payments they owe. They are in desperate need of funds and support from the government. A well-oiled engine will keep the economy pumping and small business alive."
Keep small business alive? If you say so, Anil.
The future for small businesses seems desperately uncertain. Over a quarter (27%) felt they would not survive to see 2021 based on their current cash balances and anticipated a reduction in revenue over the winter months. A further 34% were uncertain, but if cash flow improved and they had an exceptional end to the year, they could make it.
Only 27% were certain about survival in 2020. Older business owners and those based in London and the south east were the most optimistic. Interestingly, small business owners reported a cash injection of, on average, £52,800, would help them see through the winter trading period.
Okay, okay.
Let's hope for the best.
ENDS
...
Anything else?
I didn't even know that swans could fly!
For some reason I thought they couldn't. Never mind.
I saw one flying around the lake in the park the other day like Concorde. The others joined in a bit.
That is the first time though.
Normally, they just float on the lake, don't they?
Maybe they're lazy.
Or maybe they are more intelligent than other birds. They can't see the point of flying around everywhere like prats.
They just want to take it easy.
I don't blame them.
Keep on floating, guys!
Laters.
