Third of smaller firms to close amid ongoing lockdown

Chief executive Chirag Shah said:

“With a third national lockdown underway, many SMEs have limited time they can survive without delivering more income.

“Despite the government support measures in place, businesses can’t continue operating under such uncertainty and with limited notice about changes to restrictions.

“Businesses need a clear road map out of the pandemic, so owners can plan and have clear visibility of the support available to them.”

A further one in four said they believe they will be able to continue to operate, but expect to make no profit.

Such closures will result in redundancies and site closures.

A number of grants are available, and are considered an essential life-line for businesses struggling to cope.

Last month, Rishi Sunak announced that the government would be providing one-off top-up grants worth up to £9,000.

A spokesperson for Nucleus Commercial Finance added:

“These grants have pretty much become a necessity for these businesses, given that Boris Johnson plunged the UK into its third national lockdown shortly after the new year began.

“This decision has not been a popular one, with businesses everywhere bracing themselves for another economically disastrous period.

“It’s expected that around 600,000 business properties across the UK are eligible for these grants and the cash, worth £4 billion, will cover some of the lost profit induced by another lockdown, which is currently in place until mid-February.

“Should the lockdown be extended, which isn’t all too unlikely given past experience, then the government may need to bolster this amount to help businesses cope with the unprecedented drop in profits they face.”