Britain’s small businesses are scramble to secure a rebound loan, because a large number of lenders block access to government-guaranteed loans or limit them to existing customers.
The Financial Times revealed on Monday that many financial institutions had withdrawn from the offer repay loans after being inundated with applications – even though Chancellor Rishi Sunak extended the program until the end of November and lengthened repayment terms.
Senior bankers have warned against high risk of default among applicants for bounce loans that would not normally be approved, as well as fraud by criminal gangs capable of exploiting the limited checks needed to borrow money.
Small businesses are now in a race against time to transfer their bank accounts to the few lenders who are still accepting applications from new customers.
In this week’s live business clinic, the Financial Times wanted to hear from small business owners fighting to find a way out of the crisis.
Claer Barrett, the FT’s mainstream editor, and Andy Bounds, the FT’s corporate editor, participated in a live video Q&A with readers. Watch the video above to see the answers to your questions.
How easy or difficult do you find it to access credit from your bank? What is your experience of trying to change banks to access a loan? What will happen to your business if you cannot access support?
Maybe you work in the banking industry and want to explain why so many lenders restrict access or how you think the process could be better managed.
To ask a question or relay your experiences of accessing your bank’s support, please leave a comment below.