Covid 19 and Banks

All of you will have read the press recently with great interest around the support that was promised by British Banks for businesses struggling with adverse conditions.

I have recently spoken to many local agricultural managers to see what issues they are facing. Workloads are much higher than normal and in the agricultural sector it appears that diversified business is more adversely affected in most cases. That is not to say that farming is not affected as prices and markets have changed.

Most requests locally by farmers appear to be based around Capital Repayment Holidays on loans. This can certainly help cashflow and can be arranged by speaking to your manager. The other problem solver has been increases to overdrafts where this is sometimes much more appropriate than a CIBLS loan. On Monday 4th May they are also introducing Bounce Back Loans up to £50,000 for businesses that turnover up to £200,000. My impression is that the Banks are keen to help but don’t assume that you need a CIBLS type loan. This loan is not always the best way forward.

The increase in requests is causing considerable increase in workloads on local managers but they all give me the impression that they are helping and supporting farms through these difficult times.

If you need to form a clear cashflow plan to get your business through the Covid 19 problem, contact Ed at edwarren@fcgagric.com or your local FCG Office.

Midwest Consulting Limited is regulated by the Financial Conduct Authority and is a registered credit broker FRN793780. We are members of the NACFB.

Posted in Business Management, Sherborne.