Although borrowing by businesses went up during the pandemic, only 11% of UK SMEs say that they’re concerned about their current level of debt.
New research from Lloyds Bank Business found that interestingly, for those who are worried about debt, their main concern isn’t paying it back (cited by just 16%) – instead, it’s about whether that debt will prevent their business from investing in itself for future growth.
Gareth Oakley, Managing Director of Business Banking at Lloyds Bank, commented, “The onset of the pandemic forced many small businesses to urgently seek new borrowing, often for the very first time. The various government-backed schemes in particular proved to be a vital source of funding at a time of huge uncertainty. For other firms with existing debts, capital repayment holidays provided the necessary breathing space to navigate those early days of lockdown.
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Email Jaime“As the economy has reopened and begins to recover, it is reassuring that a relatively low proportion of small businesses are worried about their ability to make repayments on their debts.
“However, when it comes to future growth prospects, the longer-term impact of repaying those loans should not be underestimated. As the country seeks to recover, it is vital that businesses can access to the specialist support and investment they need to grow and prosper.”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
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