Tag Archive for Outlook

Hot Business News Today

UK must improve export support scheme for SMEs

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The Federation of Small Businesses (FSB) is calling on the government to make vital improvements to the UK’s export support scheme.

It comes amid the recent closure of the government’s Tradeshow Access Programme (TAP) which the FSB argues was not “as good, or as good value, as it could have been”. The scheme provided £500-£2,500 towards direct exhibiting costs, conference fees or creating promotional materials.  

>See also: 5 things to remember when exporting for the first time

Now the FSB says there is an opportunity to seize a better export support scheme. The body has set out a five-point plan to help achieve this, particularly for regions and businesses where support is most likely to help them become first-time exporters or move into new markets.

Help trade show access across the UK, particularly in areas like the north east and north west of England and the west midlands – these areas have the largest proportion of small firms considering exporting for the first time compared to those who already do.Expand support to costs such as conference entrance feesIncrease proportion of costs covered by grants to ensure best value for

Read more...

Hot Business News Today

Defaults on Bounce Back Loan repayments lower than feared

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Defaults on the government’s Bounce Back Loan scheme are set to total up to £5bn – much lower than the previous tens of billions expected.

The estimates from officials and bankers come from an assessment based on the first few months of debt servicing. So far, it shows that between five per cent and ten per cent of SMEs that used the Bounce Back Loan scheme have missed out on repayments.

>See also: Nearly two thirds of Bounce Back Loans could go bad, says government

Bankers said that the expected recovery from Covid-19 helped companies regain their financial independence. One banking executive said that five per cent were already repaid in full on the date that the 12-month interest-free payment ended, saying that not all of the loans were taken out of desperation, but out of caution.

However, some bankers feel they could have pushed back the worst of the issues through its ‘pay as you grow’ scheme, offering repayment holidays of up to six months as well as extended loan terms of up to ten years.

Last year the government predicted that between 35 per cent and 60 per

Read more...

Hot Business News Today

Retailers call for half of rent backlog to be waived

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The communities secretary is facing new calls from retailers to force landlords to waive at least 50 per cent of rent debts accrued during the pandemic.

The Commercial Tenants Association, representing 500 businesses, has written to Robert Jenrick suggesting that the government adopts an Australian-style strategy to deal with rent debt. Under Australia’s rent relief scheme, it was mandatory for landlords to agree to a reduction in rent payable, up to 100 per cent, relative to the reduction in the tenant’s business during Covid-19. The scheme required landlords to waive 50 per cent of the total reduction in the rent payable and accept deferral of the remaining balance paid back in instalments over the remaining time on their lease.

CTA’s founder and chief executive, Peter Bell, said: “What we’re really calling for is for the government to impose a minimum of 50 per cent rental relief, in the form of a waiver to be agreed between the landlord and tenant.

“We’re hoping that arbitration is set up in a way that’s open, fair and transparent. We want to see a fair scenario where tenants are listened to and

Read more...

Hot Business News Today

Defaults on Bounce Back Loan repayments lower than feared

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Defaults on the government’s Bounce Back Loan scheme are set to total up to £5bn – much lower than the previous tens of billions expected.

The estimates from officials and bankers come from an assessment based on the first few months of debt servicing. So far, it shows that between five per cent and ten per cent of SMEs that used the Bounce Back Loan scheme have missed out on repayments.

>See also: Nearly two thirds of Bounce Back Loans could go bad, says government

Bankers said that the expected recovery from Covid-19 helped companies regain their financial independence. One banking executive said that five per cent were already repaid in full on the date that the 12-month interest-free payment ended, saying that not all of the loans were taken out of desperation, but out of caution.

However, some bankers feel they could have pushed back the worst of the issues through its ‘pay as you grow’ scheme, offering repayment holidays of up to six months as well as extended loan terms of up to ten years.

Last year the government predicted that between 35 per cent and 60 per

Read more...

Hot Business News Today

Retailers call for half of rent backlog to be waived

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The communities secretary is facing new calls from retailers to force landlords to waive at least 50 per cent of rent debts accrued during the pandemic.

The Commercial Tenants Association, representing 500 businesses, has written to Robert Jenrick suggesting that the government adopts an Australian-style strategy to deal with rent debt. Under Australia’s rent relief scheme, it was mandatory for landlords to agree to a reduction in rent payable, up to 100 per cent, relative to the reduction in the tenant’s business during Covid-19. The scheme required landlords to waive 50 per cent of the total reduction in the rent payable and accept deferral of the remaining balance paid back in instalments over the remaining time on their lease.

CTA’s founder and chief executive, Peter Bell, said: “What we’re really calling for is for the government to impose a minimum of 50 per cent rental relief, in the form of a waiver to be agreed between the landlord and tenant.

“We’re hoping that arbitration is set up in a way that’s open, fair and transparent. We want to see a fair scenario where tenants are listened to and

Read more...

Hot Business News Today

Over half of SMEs have already bounced back from the pandemic

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

More than half (54 per cent) of UK SMEs have already met or exceeded pandemic turnover levels.

One in five (22 per cent) have already exceeded pre-Covid levels while 31 per cent predict they’ll match pre-Covid figures soon. Only one in seven still deem their path to recovery ‘uncertain’.

The study from Paragon Bank also shows that nine in ten businesses feel positive about Covid recovery. This positive sentiment is especially high among SMEs, up from 86 per cent in September to 92 per cent at the end of May.

Companies with fewer than 100 employees expected the fastest rate of recovery, with 64 per cent reporting turnover matching or exceeding pre-pandemic levels, compared to 47 per cent of larger SMEs (100-249 employees).

The survey revealed that 58 per cent of SMEs experienced cash flow difficulties during the pandemic, making it the most common challenge for UK businesses. Loss of profit was the second most common challenge, faced by 53 per cent of SMEs, followed by late payments, which affected one in three (34 per cent).

>See also: How to deal with late payment

Levels of cash reserve remain a

Read more...

Hot Business News Today

Calls to extend complex Brexit Support Fund

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The £20m Brexit Support Fund to support struggling businesses after Brexit has only given out £6.8m of its allocated funding.

Individuals and organisations are calling for the fund, now closed to new applications, to extend to a second round.

Cabinet Office Minister Michael Gove launched the Brexit Support Fund in February, encouraging businesses that trade with the EU to claim up to £2,000 each to help pay for training and professional advice. However, figures show that businesses who applied only received £1,555 rather than the £2,000 maximum.

Hilary Benn MP, co-chair of the cross-party UK Business and Trade Commission, said the support scheme was “more of an obstacle course, which discourages applications by making SMEs jump through too many hoops for a very small return”.  

Businesses were only able to apply if their overseas trading was purely focused on the EU, including Northern Ireland, with their imports and exports not going anywhere else. Business groups did lobby to have the rules relaxed so that firms that were predominantly trading with the EU could apply.

>See also: Top five tips for SME exporters in a post-Brexit world

HMRC, who

Read more...

Hot Business News Today

Over half of SMEs have already bounced back from the pandemic

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

More than half (54 per cent) of UK SMEs have already met or exceeded pandemic turnover levels.

One in five (22 per cent) have already exceeded pre-Covid levels while 31 per cent predict they’ll match pre-Covid figures soon. Only one in seven still deem their path to recovery ‘uncertain’.

The study from Paragon Bank also shows that nine in ten businesses feel positive about Covid recovery. This positive sentiment is especially high among SMEs, up from 86 per cent in September to 92 per cent at the end of May.

Companies with fewer than 100 employees expected the fastest rate of recovery, with 64 per cent reporting turnover matching or exceeding pre-pandemic levels, compared to 47 per cent of larger SMEs (100-249 employees).

The survey revealed that 58 per cent of SMEs experienced cash flow difficulties during the pandemic, making it the most common challenge for UK businesses. Loss of profit was the second most common challenge, faced by 53 per cent of SMEs, followed by late payments, which affected one in three (34 per cent).

>See also: How to deal with late payment

Levels of cash reserve remain a

Read more...

Hot Business News Today

Calls to extend complex Brexit Support Fund

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The £20m Brexit Support Fund to support struggling businesses after Brexit has only given out £6.8m of its allocated funding.

Individuals and organisations are calling for the fund, now closed to new applications, to extend to a second round.

Cabinet Office Minister Michael Gove launched the Brexit Support Fund in February, encouraging businesses that trade with the EU to claim up to £2,000 each to help pay for training and professional advice. However, figures show that businesses who applied only received £1,555 rather than the £2,000 maximum.

Hilary Benn MP, co-chair of the cross-party UK Business and Trade Commission, said the support scheme was “more of an obstacle course, which discourages applications by making SMEs jump through too many hoops for a very small return”.  

Businesses were only able to apply if their overseas trading was purely focused on the EU, including Northern Ireland, with their imports and exports not going anywhere else. Business groups did lobby to have the rules relaxed so that firms that were predominantly trading with the EU could apply.

>See also: Top five tips for SME exporters in a post-Brexit world

HMRC, who

Read more...

Hot Business News Today

SMEs left behind in government net zero goal

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Small businesses aren’t getting enough support to help the UK reach net zero, according to a new report.

It highlights that 99 per cent of British businesses are unlikely to be ready for the increase in carbon reduction policy and regulation, with the government focusing on large companies and the highest carbon emissions thus far.

Neglecting small businesses puts 52 per cent of the government’s turnover at risk and excludes a quarter of the workforce, meaning that the UK won’t meet its targets. The warning comes from Bankers for NetZero, a body made up of several banks aiming to identify initiatives before COP26 in Glasgow this November.

The UK has a legally binding target of net zero emissions by 2050. Official estimates in March show that emissions fell to 49 per cent below 1990 levels last year. This is partly down to reduced car traffic and industrial activity.

In order to help small businesses, Bankers for NetZero says that they need support using all of the following methods.

Financial incentives

This could mean:

Lowering the cost of capital by offering ‘green’ financial products and services, rewarding firms that invest in decarbonising operations

Read more...