Many small businesses won’t last more than a few months if the lockdown continues, a survey from Vanarama suggests.
It asked more than 1,000 small businesses how their companies were faring during the pandemic and their views on the funding offered by the UK Government.
Almost half said that their business had to improve within a month if they were to continue trading, with a third (32%) indicating that they could tolerate up to three months with business at its current reduced level due to lockdown.
The majority, some 60%, thought the Government had been helpful in setting up so much support but it’s clear that the help is not coming fast enough, says Vanarama.
The survey, which was sent to Vanarama’s commercial customer base, which accounts for the major trades, shows the uptake of Government support has been quite strong, although most needed additional help.
Of those who had taken advantage of the Government’s financial support schemes the Self-Employment Income Support was popular with just over 25% taking this route and 13% applying for the Coronavirus Job Retention Scheme.
The opportunity to take a Mortgage holiday or requesting Universal Credit saw pick up with just over 15% and 10% respectively taking this direction.
It also highlighted that over 48% had not placed employees on furlough which is unsurprising as many respondents are sole traders.
Andy Alderson (pictured), CEO and founder of Vanarama, said: “We set up the Vanarama Covid-19 Small Business Support Team to assist the backbone of the British economy weather the storm and get their hands on the funding they required.
“From the results of our survey it’s apparent that this service was much needed as so many sole traders are accessing Government support.”
He continued: “We were pleased to hear that the Government has listened to business owners about the length of time it takes to process requests and that its newest scheme - the Coronavirus Bounce Back Loan, which offers loans up to £50,000, will be made available to small businesses within a few days of application.”
Vanarama launched the Covid-19 Small Business Support Team last month, to provide guidance on how to access the funding available from the UK Government.
The free-to-use service can be accessed via the Covid-19 Small Business Support Team or by calling 0808 196 3900.