Moving Forward After the Furlough Scheme
With the furlough scheme finishing on the 30th of September, there is no doubt that many business owners and employers may be getting worried about the future of their company if it is financially distressed.
Employers have until the 14th of October to claim wages for their staff for the month of September. The Government will pay up to £1875 per employee on furlough to cover 60% of their wages throughout the month. Employers are required to contribute 20% of the employee’s wages, with the option of contributing more if possible.
We advise all company directors to use this time wisely to review their business’s financial position and seek advice about the possible options available to them if they are experiencing financial difficulties. It is vital to do this so that they have a plan in place to save their company.
Financial difficulties within a business can include issues paying wages, being unable to pay suppliers on time, or other problems with cash flow. If anyone is aware of these issues within their company, then they need to ask for advice from a qualified source before the situation gets out of hand.
Talking to a credible and qualified source about the issues your business is facing at an early stage means you may have more solutions available to you and more time to make a decision about how you move forward. It may be hard to accept the situation and have that conversation; however, starting this process early generally leads to a much better outcome for you and your business. To find out about us and how we can help, view our about page. There is no charge to speak with us.
The COVID pandemic has affected trading for nearly a year and a half now, forcing around 1.6 million businesses to borrow more than £79 Billion from the government. Almost 9 million staff had been furloughed at the peak of the pandemic, so there is no doubt that the government scheme has saved endless jobs and businesses.
Recovery Loan Scheme:
The Recovery Loan scheme is still available up until the 21st of December for businesses that are in financial hardship, offering up to £10 million per business. For more information on this scheme go to the government website.
Bounce Back Loan Scheme:
Bounce back loan applications, however, finished back in March this year. If you have managed to secure one of these loans for your business, then it can be paid back early without any fees. Paying it within a 12-month period of receiving it will result in no interest, however, after those 12 months, it will be set at 2.5% per year. If you are unable to make repayments under your loan please contact us for advise on your position.
We are here for you:
Here at Herron Fisher, we are fully qualified insolvency practitioners and are ready to assist you with any insolvency issues you may be having with your business. For our Croydon office, call 020 8688 2100, or for our Eastbourne office call 01323 723643. Alternatively, you can get in touch via our contact form.
Published September 23, 2021