Coronavirus loans providing 2% of cash needed for SME's
Over 200 billion pounds is currently owed to companies
The £2.8 billion of funds sent to UK businesses through the Government's Coronavirus Business Interruption Loan Scheme (CBILS) account for just 2% of the £212.8 billion currently due to small and medium firms in unpaid invoices, according to new research.
Fintech invoice platform bePayd, which calculated the figure, said the sheer sums of money constantly flowing through SMEs show just how important it is to ensure the cash that is available gets through to thousands of small businesses.
Chancellor Rishi Sunak has offered funding of up to £330 billion through several loan schemes including the CBILS plan, guaranteeing 80% of loans to businesses suffering from the lockdown and disruption.
He has been under pressure to cover 100% of the loans, to speed up the application process and free up cash, although he has so far resisted.
Published: by Radio NewsHub