According to data from British business finance lender Market Finance, companies across the nation have only £3,150 of their Bounce Back Loan remaining (from a total £50,000).
Demand for government-backed loans from UK businesses is set to soar, new research has revealed, as funds continue to run low and cash flow dries up.
According to data from British business finance lender Market Finance, companies across the nation have only £3,150 ($4,192) of their Bounce Back Loan remaining (from a total £50,000). It estimates that this amount will see firms through to the end of this week.
The insights also showed that some 84% of firms will apply for larger Coronavirus Business Interruption Loan Scheme (CBILS) loans, with only 27% of small businesses surveyed saying they are certain they will survive to see 2021. This was based on their current cash balances and anticipated a reduction in revenue over the winter months.
Others have admitted that they are in need of a cash injection of £50,000 to see them through to the end of the year.
Research findings were based on a survey of 5,000 UK companies, who are employers with a minimum turnover of £250,000, conducted in November 2020 (after the announcement of the second lockdown).
Since the announcement of the new lockdown measures, some 84% of businesses said they will be applying for CBILS loans. They indicated this would be used to protect them over prolonged lockdown measures and in anticipation of more bills, taxes or duties to pay.
In addition to this, more businesses know they can refinance their Bounce Back Loan with a CBILS loan – up from 68% two months ago to 83% today.