Despite Chancellor Rishi Sunak’s recent assertions that banks would be ‘forced’ to implement the government’s CBILS policy, many commentators are still saying that not enough is being done and what is being done is taking far too much time.
Hospitality businesses will know this better than most as all too many have had to close their doors and cashflow has come to an abrupt halt. They need help now.
The London Chamber of Commerce is the latest to voice concerns and has called on banks to do more to help businesses, and not just in London. A spokesperson for the chamber said that banks “are simply not stepping up to the plate” in the battle against the economic impact from COVID-19.
Businesses of all types and sizes are still finding it difficult to navigate loan discussions with banks appointed to manage and process the government’s CBILS policy.
Many banks post the last financial crisis in 2008 created risk averse banking, and brought in people to make sure lending was only to those who didn’t really need it. These same banks are now unable to change their processes and systems to meet a new type of customer, one that has 80% of their request for help covered by the government. A unique opportunity for lenders many would say, but not if they are led by dinosaurs.
As with every aspect of the current COVID-19 pandemic, things move at such a speed that keeping up is a challenge.
With so many good businesses in real danger of approaching a point of no return, alongside help from the banks far too slow in coming, some may say Rishi Sunak will have to enforce his instructions to banks with more discipline.