A new total business liquidity program from Snorkel Finance is responding to the wider financial challenges facing companies recovering from the impact of COVID-19.
As businesses around the U.K. work towards reopening and re-establishing their operations, it is becoming clearer that there may be a tough road ahead for companies to return to good financial health.
Referencing an article in The Times, analysis by the Office of National Statistics (ONS) shows that nearly half of all U.K. businesses do not have enough cash reserves to see them through November. Results of a survey of almost 5,000 U.K. companies between 4th May and 17th May, showed that 42 per cent of companies were found to have less than six months’ worth of cash reserves, and that number rose to 58 per cent for companies who had paused their operations during the coronavirus lockdown.
Total Business Liquidity
In response to this situation, Snorkel Finance has taken a unique approach to developing a total funding solution to provide business-wide liquidity for its customers. Snorkel Finance has broadened its funding panel to include all types of business funding, not limited to just asset-based funding. With access to more than 300 specialist funders, customers can spread their risk by not relying on a single funding source, and have access to an extensive range of financing products from both existing funders and new finance providers in the Fintech sector.
Providing an alternative to high street banks and lenders, a wide range of products are available through the new total business liquidity program. These products are varied and cover a multitude of options, including cashflow finance which may be required to take on a new contract, take the pressure off late invoice payments, or provide a sudden temporary cash injection, for example. In addition, Snorkel Finance, via partnerships in commercial property finance, can provide access to bridging loans and development loans, as well as standard commercial mortgage finance.
The program also provides funding options for new start businesses, supporting those who may have been made redundant to utilize their expertise by forming their own companies, and this can include management buy-out (MBO) and management buy-in (MBI) solutions. Snorkel Finance is also well-positioned to provide funding for all types of equipment required by companies in this sector, such as vehicles, workshop equipment, and IT systems to name but a few, and working with partners primarily in the Fintech sector, working capital finance can be provided, which may cover VAT and tax loans, as well as general debt consolidation.
These products are designed to support hire companies, contractors and related businesses with tailored financing solutions throughout their business operations, whether they are looking for short-term financial assistance as they restart, funding to expand or acquire a business, or provide a long-term financial structure to deliver their business plan.
“It’s not all about the money. But, guess what? It’s all about the money,” declares Barry Nicholson of Snorkel Finance. “Our new business liquidity program responds to the real issues that our customers are facing right now and provides a one-stop solution for inclusive business financing support that not only helps through the short-term challenges, but also establishes a strong financial structure for the businesses to grow and prosper in the years to come.”
As the Government eases its financial support for companies in the UK, having a robust plan and access to finance are going to be the critical factors for business survival. It is anticipated that as a result of COVID-19, all types of funders will tighten their lending criteria and access to finance will become more challenging and time-consuming and will require the support of specialist expertise.
Andrew Fishburn, Managing Director of Snorkel UK and Vice President, Strategic Accounts (EMEA), Snorkel said: “At Snorkel UK, we always take a holistic approach to supporting our customers and our new total business liquidity program takes it to a new level. We know how tough the environment is, and we are proud to be taking an innovative and responsible approach to financing which can bring real, long-lasting value to our customer base. This is about more than funding equipment, it’s about making sure our industry comes through these challenging times in good shape, ready for the years ahead.”