Publication: Business Money
9th February 2021
Businesses will struggle even with the new repayment extension from 6 to 10 years introduced by Rishi Sunak. Funding Xchange has built a high degree of valued and desirable data from businesses, lenders, and competitors alike, enabling us to capture true, reliable outcomes; and so from this Katrin Herrling’s – Funding Xchange co-founder and CEO predicts that over half of the BBL borrowers will struggle, and shows an unrealistic view of available cashflow for such businesses.
Though the extension will make a difference to some businesses, for most it is simply unaffordable. One in five businesses are predicted to benefit from the new extension, one in five, that’s just 20%. What about the remaining 80%? Katrin suggests the government should look at what several other nations are implementing: a debt forgiveness scheme for distressed businesses. She encourages the government to carefully examine these alternative solutions that might offer better value to taxpayers, businesses and banks. As ultimately, if one suffers, we all will. The domino effect.
Full article can be found here.