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Business groups warn firms risk facing 'spiraling' debt
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Business groups warn firms risk facing 'spiraling'

debt

 

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Firms hit hard by เล่นสล็อต the ongoing restrictions are facing unprecedented
amounts of debt and need "practical support" to stop it spiraling, business
lobby groups have told Radio 5 Live's Wake Up to Money.

 

Several important deadlines are approaching for businesses:

 

  • On 30 June, the ban on commercial rent evictions ends
  • On 1 July, employers must start contributing 10% towards furlough
    costs
  • On 1 July, 100% business rates relief tapers off to 67%

 

There are loans to consider too. More than 1.6 million businesses have
tapped into the government’s three main Covid loan schemes.
The first repayments of bounce-back loans were due this month.

 

A survey from the Federation of Small Businesses (FSB) in March showed
a quarter of its members took on more debt to get through the pandemic.

 

FSB National Chair Mike Cherry says: "Five whole quarters without
revenues is unprecedented, so we believe that no business kept closed
by the restrictions, and therefore unable to raise any revenue, should be
pursued for their Bounce Back loan.”

 

And a British Chambers of Commerce spokesperson tells the BBC:
"Practical solutions will be needed to prevent a large number of firms
across the UK from falling into a spiral of unsustainable debt."

 

Lenders say they will treat customers fairly, while doing their best to
avoid triggering government guarantees that could cost the taxpayer
billions of pounds.



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