Originally written by Jill Bottomley on Small Business
It has been widely reported that many businesses expect to make redundancies at the end of April, when the furlough scheme comes to a close.
However, many smaller businesses may be unaware that the Coronavirus Job Retention Scheme rules were changed in December. The furlough grant can no longer contribute towards notice pay.
This is going to prove a major challenge for some small businesses which are already hanging on by their fingernails to their prospects of surviving this crisis.
Particularly where the employees facing redundancy have long service – this is likely, as they are the most experienced and will have been the most expensive to make redundant last year and remain on furlough – the coming costs could well push businesses under.
Unprepared small businesses looking at the prospects of redundancies over coming weeks and months may be in one of two highly problematic scenarios.
Scenario one – you’re unaware of your staff’s right to notice and redundancy pay
The employer has staff on furlough where redundancies will likely need to be made but he or she is unaware of their rights to notice and redundancy pay and how these are calculated.
A myth tends to circulate that
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This change to the furlough scheme could lead to more costly redundancies
by Jill Bottomley • • 0 Comments
Originally written by Jill Bottomley on Small Business
It has been widely reported that many businesses expect to make redundancies at the end of April, when the furlough scheme comes to a close.
However, many smaller businesses may be unaware that the Coronavirus Job Retention Scheme rules were changed in December. The furlough grant can no longer contribute towards notice pay.
This is going to prove a major challenge for some small businesses which are already hanging on by their fingernails to their prospects of surviving this crisis.
Particularly where the employees facing redundancy have long service – this is likely, as they are the most experienced and will have been the most expensive to make redundant last year and remain on furlough – the coming costs could well push businesses under.
Unprepared small businesses looking at the prospects of redundancies over coming weeks and months may be in one of two highly problematic scenarios.
Scenario one – you’re unaware of your staff’s right to notice and redundancy pay
The employer has staff on furlough where redundancies will likely need to be made but he or she is unaware of their rights to notice and redundancy pay and how these are calculated.
A myth tends to circulate that
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3 business tips to implement in a pandemic
by Konfío • • 0 Comments
With these business tips, your company will have the opportunity to operate, and even grow, despite the pandemic.
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UK recovery is possible with planned investment in businesses
by Ian Currie • • 0 Comments
Originally written by Ian Currie on Small Business
As the UK covid-19 situation gets ever more parlous, it somehow feels counter intuitive to turn our minds to how the country will bounce into a recovery. However, as the fantastic work of our scientists and the government’s scaled-up vaccination roll-out both bring new hope, that is exactly how we must plan. The sheer will and fighting spirit of the UK population will at some point turn the tide for our beleaguered businesses. Hope and optimism are commendable traits, but where and when do the seeds of recovery begin to reveal themselves?
For months there has been a litany of bad news, with not only unemployment figures rising but reports of many businesses hanging on by their fingertips only surviving due to the vital infusions of vast financial support provided by UK government. We all know it cannot go on at these stratospheric levels, and whilst in the short term there are few alternatives, the medium and longer-term prognosis requires different thinking if our recovery is to be sustained.
If we accept that government handouts must soon come to an end, then they must be replaced with a very serious investment programme – a platform
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Microbusiness £50,000 Bounce Back Loans – how they work
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: The chancellor is extending the repayment period on Bounce Back Loans for 1.4m small businesses.
Small firms will have ten years to repay instead of the previous six years, as announced by Sunak in September 2020. Interest on extended loans will be at a fixed rate of 2.5 per cent.
Businesses can also choose to make interest-only payments for six months (this option is available up to three times on the length of the loan) or pause repayments for up to six months (this option is only available once).
Lenders will start communicating these options to customers three months before repayments begin and advise them on how each option may affect their payment profile. They contact customers directly so there’s no need to get in touch with them.
The Bank of England’s regulation chief is warning that half of Bounce Back Loans will go sour.
What’s more, figures from the Office of National Statistics show that 14 per cent of businesses think they have little or no chance of surviving the next three months.
Last year, the government extended the application for Bounce Back Loans until the end of March 2021. Previously, the loan deadline was extended to January
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An entrepreneur sells his restaurant for $ 1 in the United States
by Entrepreneur en Español • • 0 Comments
The establishment that was used as a bar and karaoke has suffered great losses and its owner Li Zhang is bearing the cost of renting $ 5,000 a month.
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Restaurant closing hours are extended and shopping centers and department stores reopen in CDMX
by Entrepreneur en Español • • 0 Comments
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SME owners hold £1.2bn of personal liabilities linked to Covid-19 loans
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Figures show that small and medium-sized business owners hold £1.2bn of personal liabilities linked to emergency Covid-19 loans, according to The Times.
This puts their personal assets on the line if their company doesn’t make it through the pandemic.
Personal guarantees were used earlier on in the pandemic and then restricted due to backlash. That said, figures from a Freedom of Information request show that 1,587 directors agreed to them when taking out credit through the Coronavirus Business Interruption Loan Scheme (CBILS).
These personal guarantees make directors liable when taking on debt for the company. Banks originally sought them on CBILS loans of all sizes and taxpayers were underwriting 80 per cent of the debt. They were changed so that guarantees are only sought on loans over £250,000.
The average size of a coronavirus business interruption loan backed by a personal guarantee is £766,000. Such liabilities will become a ‘significant issue’ for some directors once loans start to become repayable in April, said Todd Davison, managing director of Purbeck Insurance Services.
Borrowers’ main property can’t be taken as security, but second homes could be. Recovery of the loans under guarantee is capped at 20 per cent of the
Hot Business News Today
UK recovery is possible with planned investment in businesses
by Ian Currie • • 0 Comments
Originally written by Ian Currie on Small Business
As the UK covid-19 situation gets ever more parlous, it somehow feels counter intuitive to turn our minds to how the country will bounce into a recovery. However, as the fantastic work of our scientists and the government’s scaled-up vaccination roll-out both bring new hope, that is exactly how we must plan. The sheer will and fighting spirit of the UK population will at some point turn the tide for our beleaguered businesses. Hope and optimism are commendable traits, but where and when do the seeds of recovery begin to reveal themselves?
For months there has been a litany of bad news, with not only unemployment figures rising but reports of many businesses hanging on by their fingertips only surviving due to the vital infusions of vast financial support provided by UK government. We all know it cannot go on at these stratospheric levels, and whilst in the short term there are few alternatives, the medium and longer-term prognosis requires different thinking if our recovery is to be sustained.
If we accept that government handouts must soon come to an end, then they must be replaced with a very serious investment programme – a platform
Hot Business News Today
SME owners hold £1.2bn of personal liabilities linked to Covid-19 loans
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Figures show that small and medium-sized business owners hold £1.2bn of personal liabilities linked to emergency Covid-19 loans, according to The Times.
This puts their personal assets on the line if their company doesn’t make it through the pandemic.
Personal guarantees were used earlier on in the pandemic and then restricted due to backlash. That said, figures from a Freedom of Information request show that 1,587 directors agreed to them when taking out credit through the Coronavirus Business Interruption Loan Scheme (CBILS).
These personal guarantees make directors liable when taking on debt for the company. Banks originally sought them on CBILS loans of all sizes and taxpayers were underwriting 80 per cent of the debt. They were changed so that guarantees are only sought on loans over £250,000.
The average size of a coronavirus business interruption loan backed by a personal guarantee is £766,000. Such liabilities will become a ‘significant issue’ for some directors once loans start to become repayable in April, said Todd Davison, managing director of Purbeck Insurance Services.
Borrowers’ main property can’t be taken as security, but second homes could be. Recovery of the loans under guarantee is capped at 20 per cent of the