Tag Archive for Coronavirus

Large firms should each have one person to deal with late payments – FSB

Originally written by Anna Jordan on Small Business
The Federation of Small Businesses (FSB) has called on the government to introduce fundamental changes to tackle late payments.
Alok Sharma, secretary of state for Business, Energy and Industrial Strategy (BEIS) and Martin McTague, policy and advocacy chairman at the Federation of Small Business, spoke at the Conservative’s virtual party conference yesterday (October 5th).
The late payment issue has worsened since the pandemic. In its report Late Again: how the coronavirus pandemic is impacting payment terms for small firms, 62 per cent of small businesses have experienced an increase an increase and/or had payments frozen completely as a result of COVID-19. McTague said that we need a complete change in attitudes.
“It’s a culture in the UK. There should be one person responsible for supply chain behaviour in a big business. There’s no place to hide, they know the data. They would be responsible for false information.”
He adds that the Small Business Commissioner (SBC) is doing a good job, but he’s got ‘one arm tied behind his back’. The Commissioner is relying on a whistleblower which damages the whistleblower’s relationship with the business and the SBC should have the power to hurt them financially.
“A lot of

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Rishi Sunak plans grants for small businesses hit by hard lockdown

Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak is drawing up plans for new Treasury support for small businesses who find themselves closed because of hard lockdown.
Pubs and restaurants would be forced to close, as well as possibly non-essential retailers, at the top level of a “three-tier” lockdown strategy, which could be announced as soon as tomorrow.
Prime Minister Boris Johnson is expected to announce a simplified three-tier system of local, regional and even a national lockdown. The system has yet to be finalised, with sources telling the Times that it was “stuck in No 10”, despite hurdling coronavirus infection cases in the North and scientists urging a national “circuit-breaker”.
>See also: HSBC will not accept any more Bounce Back Loan applications
According to the draft traffic-light-style plan, obtained by the Guardian, the top-tier lockdown would include closure of hospitality and leisure businesses.
Mr Sunak has already provided grants of £1,500 to businesses forced to close under local lockdowns and said this week the government was prepared to move with “pace and scale” to deal with new problems as they arose during the crisis.
Lockdown grants
In September, the government announced that small businesses affected by a local lockdown could claim for a £1,000

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Large firms should each have one person to deal with late payments – FSB

Originally written by Anna Jordan on Small Business
The Federation of Small Businesses (FSB) has called on the government to introduce fundamental changes to tackle late payments.
Alok Sharma, secretary of state for Business, Energy and Industrial Strategy (BEIS) and Martin McTague, policy and advocacy chairman at the Federation of Small Business, spoke at the Conservative’s virtual party conference yesterday (October 5th).
The late payment issue has worsened since the pandemic. In its report Late Again: how the coronavirus pandemic is impacting payment terms for small firms, 62 per cent of small businesses have experienced an increase an increase and/or had payments frozen completely as a result of COVID-19. McTague said that we need a complete change in attitudes.
“It’s a culture in the UK. There should be one person responsible for supply chain behaviour in a big business. There’s no place to hide, they know the data. They would be responsible for false information.”
He adds that the Small Business Commissioner (SBC) is doing a good job, but he’s got ‘one arm tied behind his back’. The Commissioner is relying on a whistleblower which damages the whistleblower’s relationship with the business and the SBC should have the power to hurt them financially.
“A lot of

Read more...

Local lockdowns only make the problem of late payment worse

Originally written by paulchristensen on Small Business
Yesterday the government announced a raft of new local lockdown restrictions in Liverpool. These follow on from local lockdowns across the north of the country, and likely precede harsher measures in the next week or so to be imposed on London.
It is clear that the government remains committed to keeping the “R” rate low, and prioritising protecting the NHS’ capacity over any resultant economic harms. That’s its trade off to make – but if it is a trade-off it insists on making, then small businesses need the government’s support more than ever.
These hyper-localised lockdowns have a huge impact on the small business community. For a large number of SMEs, their suppliers and customers are geographically proximate to their base of operations. This means that the viability of their business is tied to the health of the local economy, and, critically, to individuals and businesses producing and buying goods and services.
>See also: HSBC will not accept any more Bounce Back Loan applications
Think about a medium-sized grocer that supplies a number of large corporates in Liverpool. With profits already damaged by the downturn in orders from cruise lines and shipping companies, they are having to extend

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HSBC will not accept any more Bounce Back Loan applications

Originally written by Timothy Adler on Small Business
HSBC has closed its doors on new Bounce Back Loan applications, saying it needs to process loan decisions already in hand.
Small businesses should have until the end of November to apply for a Bounce Back Loan.
To date, 1.3m companies have borrowed £38bn through the Bounce Back Loan Scheme (BBLS).
>See also: Half of small businesses will never repay Bounce Back Loans, warn banks
HSBC halting Bounce Back Loan applications due to huge demand will anger small business customers hoping to sneak under the wire and take out the one-year interest-free loan before November 30.
The bank has approved 194,000 Bounce Back Loans so far worth £5.9bn and said it is approving a new loan every 20 seconds.
It will continue to process applications from existing HSBC customers as well as those made by non-customers before 9am on Wednesday, September 30.
HSBC will be closed to businesses opening new accounts until December 14.
>See also: Lloyds rapped for forcing Bounce Back Loans borrowers to open accounts
An HSBC UK spokesman told the Telegraph: “As one of the only banks that remained open to applications from all UK businesses since the scheme’s launch, we received a huge level of demand. With the

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Local lockdowns only make the problem of late payment worse

Originally written by paulchristensen on Small Business
Yesterday the government announced a raft of new local lockdown restrictions in Liverpool. These follow on from local lockdowns across the north of the country, and likely precede harsher measures in the next week or so to be imposed on London.
It is clear that the government remains committed to keeping the “R” rate low, and prioritising protecting the NHS’ capacity over any resultant economic harms. That’s its trade off to make – but if it is a trade-off it insists on making, then small businesses need the government’s support more than ever.
These hyper-localised lockdowns have a huge impact on the small business community. For a large number of SMEs, their suppliers and customers are geographically proximate to their base of operations. This means that the viability of their business is tied to the health of the local economy, and, critically, to individuals and businesses producing and buying goods and services.
>See also: HSBC will not accept any more Bounce Back Loan applications
Think about a medium-sized grocer that supplies a number of large corporates in Liverpool. With profits already damaged by the downturn in orders from cruise lines and shipping companies, they are having to extend

Read more...