I was listening to someone talking about Covid-19 and (again) the metaphor of War was being used.
Little wonder with the lockdowns, the queuing, the rationing, the checkpoints and the war-talk of Presidents, Prime Ministers and prices. A war chest of loans is being brought out to fight the financial difficulties for businesses – I’m thinking especially about the limping sectors such as hospitality and airlines – a wartime effort for wartime deficits.
For small businesses, the coming few months are going to be tough. Therefore, as someone who works with all types of businesses, people from the wider community and lenders, I want to reassure that, like most in my field, we’re all doing our bit to support others, in what is an extraordinarily turbulent time.
The financial landscape has shifted. Many, if not most, non-bank lenders are now working remotely or under review to work remotely, and to which I’m able to keep channels open. As part of the Government war chest, announcements have been made about mortgage holidays for some homeowners who are up to date with mortgage payments (meaning a slight uplift in future payments) and cheaper rates offer some breathing space but there might be more savings for some by moving their mortgage (even during this time) as not all lenders offer the same terms. This applies also to loans and credit cards.
For businesses, preventing liquidity shortfalls and weathering variant crises that will (or have) come about as a result of the Coronavirus are among the factors to consider when looking to their safety nets and revolving credit lines. Under normal circumstances, a decision to look at alternative routes can, quite rightly, take some time to weigh-up. As we know, these aren’t normal circumstances.
I understand the impact of negative consequences for businesses can be aided by a breathing space and always encourage people to call me and talk about their financial challenges.
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