SMEs In Deep Waters? Not Until The Giants Are Watching!
A study states that only 27% of 9000 SMEs in the UK have prepared financial forecasts as a result of the Covid-19 outbreak while the other states concerns about their going concern status. Tax payments, liability settlements, operating expenses mainly concerning labour are growing issues for SMEs(SMEs In Deep Waters? Not Until The Giants Are Watching!).
With debt being one of the major setbacks, even bounce-back loans, that have a cap of 50,000 pounds are not sufficient financing for these organizations to cope in these times of financial and economic distress.
I believe it is time for the Market giants to step in, and lend hands to their clients and suppliers to push them to retain their entities as far as intact they can be to continue doing business and keep the cycle running.
These are times when companies are laying off their workers, cutting costs as much as possible due to reduced or zero demand in the market. Say, The automobile industry in Pakistan recorded 0 sales in April, with warnings of laying off 20% of their workers in his pandemic. Despite losing 52% of the revenue in this pandemic, Toyota Indus Motors has announced an interest-free loan package for their suppliers and dealers, mainly SMEs while retaining their employees!
While calls by SMEs for financial support remain unanswered, IMC has established fair and heroic grounds to be announcing such relieving loans to organizations in financial distress.
It is generating goodwill and the cycle for such SMEs running and an example to IMC’s competitors that people you do business with are the ones that keep you going.