Complexity is stalling the funds landing with SMEs; 1 in 10 SMEs have already had to close their business

ACCA UK and The Corporate Finance Network’s (The CFN) weekly tracker of SME health reveals that a third of businesses will probably not be able to access the cash they need to last more than two weeks of lockdown (33%).

And if the lockdown lasts another four weeks, respondents estimate that 38% of the businesses they advise will definitely not be able to access the additional cash they’ll need to survive, compared to 26% in last week’s tracker.

The latest update about the impact of Covid-19 on SMEs shows over 1 in 10 clients have already had to liquidate/ dissolve their company with 92% of private sector members surveyed not having yet made a CBILS application, although 42% say they may have to apply soon. A further 7% have had an application rejected.

Head of ACCA UK Claire Bennison says: ‘Our members’ helpline is being contacted by accountants working with SMEs, striving to secure loans and cash. What they’re experiencing is frustrating for all involved – delays and administrative complexity that undermines the rescue package that’s being offered. We totally understand solutions are having to be found at pace, but there’s a rising sense of distress as SMEs face the challenge of working out how they’ll pay their teams over the coming weeks.’

Read the full article here.