Across the UK in 2019, the insolvency and restructuring profession rescued 7,200 businesses, saved 297,000 jobs and returned £1.82 billion to creditors, R3 reported, highlighting the impact it has in helping businesses to overcome financial challenges. Fast forward to post-pandemic, our economy took a huge hit, as the UK Government provided relief schemes to help businesses stay afloat. Though that was only a temporary solution, expertise from the insolvency and restructuring profession will always be a permanent solution, one that’s here to stay…
Whilst businesses across the country are in the process of restoring normality following disruptions from the pandemic, the impact on the economy has left many with uncertain futures. To resolve this financial distress, the UK Government provided support that allowed more time for individuals and businesses to get back on their feet in a time of panic.
In 2020, measures were introduced to support businesses affected by COVID-19, such as loans, grants and tax allowances. Known as the Bounce Back Loan, the scheme helped SMEs to borrow money at a low-interest rate, guaranteed by the Government. The Recovery Loan Scheme, launched in April 2021 and has extended to June 2022, helped provide businesses with access to loans and other kinds of finance to aid recovery post-pandemic to support the transition period. In June 2021, protection from eviction was granted for businesses that had to remain closed as a result of COVID-19 and were unable to pay rent on their commercial properties, a scheme that would help tenants and landlords work together to come to an agreement about money owed. Again, to ensure plans could be put in place, the measures were extended to March 2022.
Government aid can only last so long, which poses the question: how will businesses cope without the additional support that’s kept them afloat? For those drowning in debts and considering liquidations, there is a solution, and that comes in the form of insolvency and restructuring professionals.
As recognised by R3, the skills and expertise of the insolvency and restructuring profession are invaluable, especially in achieving successful post-pandemic economic recovery following the withdrawal of COVID-19 support schemes. The profession plays an integral part in helping businesses navigate this new landscape of uncertainty. By supporting the UK economy to stabilise cash flow, promote economic regeneration, resolve financial stress and save jobs, the profession can instil confidence in businesses wishing to return to trading, lending and investing without worry.
The road to recovery has been rocky for many businesses, following the easing of Government support measures. But with guidance from businesses like ours at Breal CM, we’re supporting organisations before, during and after the pandemic with solutions that can ease the impact of growing debt and volatile cash flow.
With agile action and experience in undertaking collections activities in an insolvent circumstance, we can provide a wider choice of solutions and an accurate picture of the situation for our clients. Our services offer detailed reporting, site visits and litigation action to help businesses recover from insolvency.
To learn more about how our expert Insolvency and Recovery solutions can help to get your business back on track, call 0330 0430282 or simply email us at info@BREALCM.com.