The initial quantity of enquiries the high street banks received was obviously immense; once the scheme was announced it took time to put the process together.
Each application takes a minimum of half a day for the banks to compile and these are now submitted to a further higher level of credit for approval, than previously. This is on the condition that the full information is supplied by businesses in the first place. The process has now started to settle and there appears to be clear progress with the banks getting good feedback from recipients, who submit full details and comprehensive applications.
Inevitably, the initial noise was from those most in need; the advice is for businesses to choose the right lenders to ensure they don’t waste their time and hopes with the wrong provider.
Some advice tips include:
- Always go to your high street bank first with a brief outline of your current situation to get an honest and swift, red or green light… and be honest with yourself
- If you receive a positive response ensure your business plan and management information is as complete as possible, it will help your application go through first time. You may find the following page helpful: Lending Criteria Tips
- Don’t look to switch banks at this stage, most banks are not reviewing new customers at the moment – they are focusing on their own
- Know and understand the impact of Covid-19 on your business, be prepared to document and discuss
- Ensure the loans are affordable over the given term
- Make the most of government assistance – furlough staff, deferring revenue payments etc
- Act swiftly to secure the right credit – facilities will change as companies credit ratings change
- Preserve cash – cancel dd’s – be in control
- Analyse, know and be responsible for your own business
- Make the hard decisions quickly
- Be honest, transparent and realistic with lenders but more so with yourself and your business
- Maintain team spirit
- Plan for tomorrow
- The credit landscape is changing dramatically and it is important to consider your overall position
- Do your bit when we get to the other side
- Be kind and be safe – we’ve all been and are going through an unprecedented journey!
Good luck and stay safe, and do let us know if you would like help with any of the above.
email us: firstname.lastname@example.org
call us: 0118 338 1818