Join Now! /

Stats show that Covid-19 is affecting both vulnerable and established businesses

Startacus RSS

by Startacus Admin

pexels 2058136

Funding Xchange data reveals that the impact of the crisis is spreading from the most vulnerable businesses to more established businesses...

There is a concerning trend that the financial impact of the Covid19 crisis is now hitting hitherto safe established businesses according to research being undertaken by Funding Xchange, the online platform appointed by the Government to help businesses declined for loans by their mainstream bank identify other lenders.

funding xchangeIn the first two weeks following the lock-down, vulnerable businesses were the predominant users of the referral process to access very small amounts of funding, with 7 out of 10 of those businesses requesting less than £15,000. However it is now evident that it is not just these businesses that are struggling.

According to data collated by Funding Xchange, in April, there has been a clear swing towards the next tranche of businesses. These businesses have been able to ride out the first few weeks but are now seeking cashflow support.

pexels 590022In April, 47% of the businesses that have been referred to the Funding Xchange platform have traded for at least three years compared with just 34% in March, thereby indicating that there is now evidence of developing financial pressure within established businesses too.

Also, those businesses now applying have a higher level of turnover than those active during March, with 47% turning over in excess of £100,000, an increase of 15% from March.

A similar trend is seen when looking at the credit quality of applicant businesses. In the first two weeks of April, 46% of referred businesses have a higher quality credit score compared with just 32% in March.

You might also want to read : Future Fund may not encourage investors to invest

Subscribe to our newsletter

If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Startacus RSS
Business DealsSubmit Your Startup
Win TicketsNetwork and Collaborate
Our Latest Features

Published on: 20th April 2020

If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.

Create an Idea!View Other Ideas, Projects or Startups
Why not Sign Up?
Create Projects
Edit Projects
Self Interviews
Self Starter of the Year
Product Giveaways
Subscribe to our Newsletter
Check us out at our Google+ page!