As the corona pandemic rages on, SMEs and businesses in general are struggling to keep their doors open. If you are facing this situation, it may be time for a Bounce Back Loan
What is a Bounce Back Loan?
A Bounce Back Loan (BBL) is a new scheme designed by various governments to help boost businesses during this Corona Virus period. Governments recognise the role SMEs play in boosting the economy especially on the grassroot level.
Why are SMEs More Affected?
First off, SMEs are more labour intensive than bigger businesses. Consequently, Covid-19 effects like the lockdown significantly affected productivity. As a result, there is not enough cash flow to run the business as well as settle recurring expenses like salaries.
Secondly, SMEs have less liquidity reserves. Therefore, they run through their reserves much faster putting them in debt. Furthermore, SMEs have few financial sources. They have to rely on banks. Unfortunately, if they cannot prove that the loans are payable, it is unlikely that any bank will front the loan.
Third, SMEs seldom have substantial assets that they can put up as collateral for loans.
All these factors leave SMEs with little to no chance of getting loans.
What can Hyaat Capital do to help?
We are a financial facilitation company and experts in helping businesses acquire funding in less than ideal situations.
If you are in need of a Bounce Back Loan, visit us today. We will discuss your situation and see how best to secure the funds and keep your business afloat.