Ahead of the October budget, we suggest 5 key measures to support the engine room of the economy
October 2021: This week, we've had our thinking caps on and have set out our Autumn 2021 Budget wish-list to build SME resilience. This follows news of a 56% rise in company insolvencies[i] in September 2021 and as many businesses that used the Coronavirus Business Interruption Loan Scheme (CBILS) face the prospect of an increase in loan repayments once the Bank of England raises interest rates.
The Purbeck Insurance Budget Wishlist:
- allow for the fact that some new businesses would have put their plans
Todd Davison, our MD said: “Small businesses are the engine room of the UK economy yet many are facing a perfect storm of energy cost rises, supply chain issues, a rise in loan repayments, cessation of the furlough scheme and the knock-on effect of all of the above in late payment by customers. They need more forms of financial support to build their resilience, to get them through the year ahead.
“Focusing measures on those businesses at the start-up and scale up phase will help to lead the private sector recovery. However, there must be caution on increasing government borrowing, so a tricky balance needs to be achieved in raising money from taxation without stifling recovery of the public sector as a whole.”
We have been supporting SMEs throughout the pandemic, offering insurance cover that provides protection against the risk of a Personal Guarantee for a business loan being called by a lender following business failure. As part and parcel of cover, we offer advice, mentoring and help at the point a debt needs to be settled, by acting as a point of liaison with a lender. The level of cover is based on a fixed percentage of the Personal Guarantee the company director wishes to insure and this is dependent on whether the corresponding finance facility is secured or unsecured. In essence, if the business does fail, up to 80% of the loan will be settled by the insurance rather than the business owner’s home, savings and other personal assets being called on to settle the debt.