With the majority of banks starting to wind down their acceptances for the Recovery Loan Scheme (RLS), we are now approaching the end of the final Covid-inspired business support system. With the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) already having finished, the conclusion of the RLS will spell the end of government backed schemes for businesses. It could mean slightly worrying times ahead if past trends continue as after the BBLS and the CBILS ended, bank lending to small businesses fell £1.4bn to £14.6bn in April 2022 (cpa.co.uk).

Even though the non-PG backed RLS was not as popular as its predecessors, with the cost-of-living crisis having a negative impact on consumer spending it is expected that lending figures will fall again, as banks are less likely to lend to the hospitality industry because of a perceived higher risk.

Chartered accountants and business advisers Hazelwoods believe “Banks are really starting to back away from lending to hospitality businesses”, thus meaning “some pubs, restaurants and hotels are really going to struggle”. For SMEs, it may prove difficult to secure bank lending at viable rates with a reduction in consumer spending in various industries.

So is that it then? All doom and gloom? Maybe not.

Whilst JR are a broker into banks, we also offer our own funding service using our Quirky Kit® service. This is JR’s trademarked financial solution to asset funding for when the banks say no. One thing the banks miss out on is taking the time to understand the individual as every story is different and they can be guilty of not recognising the residual value of assets. Using our own funding to subsidise, we secure mission critical finance, even in financially uncertain times like these.

There are also plenty of finance options still available for both flexi-loans and asset finance, even after the end of the Covid-loans.