Credit, Collections & Insolvency News
Latest HM Treasury figures have reveal that just under 1.2 million businesses in the UK have been supported by finance from lenders through government-backed coronavirus lending schemes.
On the three-month anniversary of the Bounce Back Loan Scheme (BBLS), the figures reveal that over 1.13 million small and micro businesses have now been backed by the UK’s banking and finance industry through the scheme.
During this period, lenders have approved an average of 87,000 new Bounce Back Loans per week. The Coronavirus Business Interruption Loan Scheme (CBILS) has now supported 58,600 businesses with over £13 billion worth of finance and facilities.
Lenders have also backed 480 larger businesses through the Coronavirus Large Business Interruption Scheme (CLBILS), as they look to secure their long-term future beyond the pandemic.
Responding to the latest HM Treasury figures on Covid-19 support for businesses, Managing Director of Commercial Finance at UK Finance, Stephen Pegge, said “The banking and finance industry remains committed to supporting the nation’s businesses through the challenges they are facing from the coronavirus crisis.”
“Over the past three months, 26 lenders have thrown their support behind the Bounce Back Loan Scheme by lending to over 1.13 million small and micro enterprises, highlighting the importance of the scheme to the small business community in these challenging times.”
“Bounce Back Loans are just one aspect of the sector’s support package for the UK economy, alongside other measures including capital repayment holidays, extended overdrafts and invoice finance facilities. This support is designed to ensure businesses are able to navigate the coming months, but diverse sources of finance will be needed to help them prosper in the future.”
“It remains important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.”
