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
Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance solution is warning the owners and directors of specialist and small-scale manufacturing businesses that they may find their finance options severely limited unless they put their personal assets such as their home and savings, on the line.
Purbeck responds to the R3[i] survey of insolvency and restructuring experts that found 8 in 10 respondents expect personal insolvency numbers to increase within the next 12 months with 74.2% expecting this to be related to business failure as a result of Personal Guarantees.
The Trade Credit Insurance guarantee should mean many small businesses, particularly those in the construction and manufacturing sectors can continue to access affordable insurance to support trading with other businesses and provide confidence within the supply chain.
Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance solution has welcomed the Job Retention Bonus but fears this will be too little too late for small businesses reaching the end of their cash reserves as the furlough scheme ends in October 2020.
There are many finance options out there for SMEs which need loans to get started or to grow. But how do you qualify for a business loan?