Recently, it was found that 193,000 businesses had fallen behind on their bounce-back loan repayments and had not adhered to the terms of their loans.
151,000 of those arrears are more than 90 days past due, which is regarded as the threshold for being in serious financial distress. With a combined total debt of more than £4.5 billion.
Since then, the government has taken additional steps to help people in financial difficulty, including the introduction of the new “Pay as You Grow” programme.
While loans can be helpful, businesses are increasingly finding themselves in dire financial straits because they are unable to meet the lenders’ stipulated payment terms.
It’s possible that businesses would start to gain from other funding sources. For instance, it might be wiser to investigate invoice financing options if you have a ledger of unpaid invoices.
These allow you to access a percentage, usually up to 90%, of the value of an invoice. Quickly releasing the funds tied up in invoices. This means you don’t have to wait until your customers have paid, to pay off loan repayments.
Are you struggling to make Covid bounce-back loan repayments?
Apollo’s Invoice Finance facility provides you with money, based on what your customers owe to your business through your invoices. Allowing you to quickly access up to 90% of the value of the invoice, usually within 24 hours.
Releasing these funds allows you quick access to cash that is owed to your business. Meaning you do not have to wait to receive payment from your customers. This can be extremely helpful for cash flow management, and investment purposes.