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UK Chancellor's announcement highlights SME's viability being shaken

Thursday 16 July 2020 09:46 CET | News

UK’s Chancellor has announced that is expected to allow repayment flexibility to the SMEs that have taken advantage of the Coronavirus Loan Schemes.

In the latest Quarterly Monitor covering the April to June 2020 period, released by Funding Xchange, Funding Xchange’s analysis indicated that more than 6 out of 10 borrowers have insufficient free cashflow to be able to repay the loans, and without some form of repayment flexibility being introduced, that many of these businesses will be forced into liquidation.

According to the official press release, Funding Xchange is in discussion with several banks and is currently applying for funding through the RBS Pool E Remedies Fund being administered by BCR, to deliver the online solution to help banks in assessing affordability of repayments, drawing data available as a result of the new open banking legislation.


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Keywords: SME, UK, Coronavirus Loan Scheme, coronavirus, COVID-19, CBILS, Funding Xchange, loans, banks, RBS Pool E Remedies Fund, BCR, data, Open Banking, banking
Categories: Banking & Fintech
Companies:
Countries: United Kingdom
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Banking & Fintech