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Financing a start-up and reduce the risk of a personal guarantee

  • A rise in start-ups born during the pandemic[i] is hugely positive but also not surprising. We’ve had more time to think and do and explore new avenues, particularly where existing business models or employment have ceased to exist. Necessity truly is the mother of invention. But while the pandemic has created new opportunities, the lending environment for start-ups looks set to be challenging.

Start-up financing

What are the alternatives to CBILS?

  • For smaller businesses across the UK, the government has introduced a favourable lending package to help firms get access to the funds they need to survive the coronavirus crisis. The Coronavirus Business Interruption Loan Scheme (CBILS) is available via British Business Bank-accredited lenders including high-street banks and smaller specialist lenders until 30 September 2020.

Coronavirus Business Interruption Loan Scheme alternatives

29% of SMEs have kept calm and carried on with no action needed

  • Personal cost of Pandemic to business owners is high but optimism for the future prevails

  • -> 80% of SME bosses have been open and honest about state of finances with workers
  • -> 1 in 5 SME owners have put their home up for security for a business loan
  • -> 18% of SME bosses took a pay cut, 14% have not paid themselves
  • -> 78% of SME workers felt their employer has supported their mental health
  • -> 48% confident about their job prospects, 26% pessimistic
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SME survey findings

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