For many companies digesting today’s news will be hard, as many sectors including retail, casual dining and construction have already been significantly impacted by the global pandemic. The extent of the problem will only be revealed when the Government dismantles the support schemes which will leave business vulnerable to managing their own debt. This, for some, will be crippling.
Dynamic conversations will be taking place between lenders and their customers to manage this process and ensure the terms of their debt are manageable. The UK has a culture of ‘rescue finance’ with insolvency being the last resort for struggling businesses. Wherever possible, banks and lenders aim to ensure financial support is available for financially stressed borrowers.